Trust the Markets

Any government attempted bailout of the economy is wrong headed from the very beginning. The government has no wealth creation mechanism of its own. It produces no good or service for sale in a competitive market, where consumers decide if they want it or not. When the federal government does offer a product or service, it makes its use mandatory or it creates a monopolistic marketplace like the case of the U.S. Postal service. The only place you can send a first class letter is through them, and they do such a great job don’t they?

The government simply transfers money from the private sector into the public sector. It’s a great transference of wealth (you can hear the sucking sound if you listen close), not a creation of it. All government monies are taxpayer monies. Every dollar in the public sector is a dollar not at work in the private sector, where wealth and jobs are created. Businesses, not government, create jobs. When the government claims they’ve created jobs through make work programs, all they’ve done is add more parasitic activity to the system which sucks more life from the private sector. The only money the government can give to stimulate the economy, if you believe they can do that, is money that it took from citizens in the first place. Of course, the government absorbs a huge percentage in administration and then it calls for more taxes and fees to justify its spending.

People that want more and more central planning of our economy are on the wrong side of history. The greatest centrally planned economy of recent times, the former Soviet Union, was an utter failure. Communism does not work. People will not reach maximum productivity when they have no stake, no incentive to achieve. The recent boom in China is a result of a move away from its historical planned economy, towards capitalism and free markets.

This whole circus of bailouts and giveaways is a game, a distraction, designed and implemented by those who support ever increasing government. They help create a crisis by telling banks who they have to loan to and what types of loans they have to make. Businesses are burdened with excessive regulation and taxation. They meddle in the free markets indiscriminately with no regard for outcomes. Then when the markets react and make a correction they blame the free markets and capitalism. The BIG government types scream “greed” from the roof tops and clamor for more oversight and control.

If our leaders really want to “stimulate the economy”, how about leaving more money in the private sector where job creation really takes place? Let’s let Americans keep more of what they earn in the first place so they can invest in new businesses and expand existing ones. Government should put an end to the era of excessive taxation and regulation. During Reagan's presidency, income tax rates dropped from 70% to 28% in 7 years which led to the longest period of peacetime economic expansion in United States history. At the end of the day, Americans will do a better job managing their own money than some distant politician whose own self interests conflict with those of his country. Trust the markets, trust the American people.