We Need Government to Manage the Economy.
Without government control over economic policy our economy would be in constant depressions…bull sheep!
If this was true then after every natural disaster government should be able to step in and bring things back to normal quickly. How normal is New Orleans? By some estimates the government has spent $400,000 per person affected by Katrina. It’s still a disaster area. When hurricane Andrew ripped apart South Florida government stepped in. Years later the area was referred to as the “Blue Roof Land” — because roofing consisted mostly of blue tarp. Government bungling had scared contractors away from the area.
Some may say: “What about the Great Depression?” This is a perfect example of the FedGov stepping in and making a mess. Normally recessions and depressions last 1 to 3 years. The Great Depression lasted nearly 14 years! Some of Roosevelt’s harmful practices (part of the New Deal) were: handing out jobs as political favors, forcibly setting ridiculously high wages, closing shops that stayed open too long, and removing capital from job creators to pay for it all!
Let’s keep it simple. Businesses and individuals create jobs. Government can only hire people when they remove capital from individuals and businesses that are the job creators. Government then wastes 70% or more of this capital before finally using it to public benefit.
When the Federal Reserve lowers interest rates to “soften” economic downturns they are also destroying the value of the U.S. Dollar. In 2007 the stock market was up nearly 6%, but the U.S. Dollar lost 25% of it’s buying power to most of the world’s currencies. By propping up Wall Street, government has hurt Main Street. Consumers will find that oil and other essential commodities will cost them more USD.
Government should stick to protecting the rights of individuals and defending our nation from it’s enemies. When government takes on more, we all suffer.
Tags:
depressions,
disaster area,
economic downturns,
economic policy,
government control,
great depression,
recessions,
stock market
Filed under: American Economy, Dollars & Sense, Free Thinkers, Truth & Lies, US Dollar by admin No Comments »
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