“Despite the long term damage to the economy inflicted by the government’s interference in the housing market, the government’s policies of diverting capital to other uses creates a short-term boom in housing. Like all artificially created bubbles, the boom in housing prices cannot last forever. When housing prices fall, homeowners will experience difficulty as their equity is wiped out. Furthermore, the holders of the mortgage debt will also have a loss. These losses will be greater than they had otherwise been had government policy not actively encouraged over-investment in housing.” – 07/12/2002 (in House, Congressman Ron Paul, R, TX)
The economic problems we are experiencing now are a result of regulation, and we actually wanted them to happen, so that we could have an excuse to propose more regulation. We predicted this recession would happen way back in 2002. We knew it would happen all along, and we were actively warned about it, and we listened, and we decided to let it happen anyway. The Democrats knew it would happen, and so did the Republicans, and they could have stopped it. They didn’t because, quite frankly, they don’t give a sh** about you or me, or anyone else in this country that doesn’t directly help them gain or retain power, or help propagandize people like us. If you think regulation is the answer, read up on Adam Smith and Friedrich Hayek, because you’ve been relying on the “news” for economic information, and they’ve got you painfully brainwashed. Americans now live like feudal serfs, working all of their lives, and never controlling their directions. Socialism is more similar to the tyranny of the past than to the prosperity of the future.
Other things you should know, in your infinite economic wisdom, before you take over the free market and start planning the economy: medical care is only expensive because it is overregulated. any economist will tell you that competition brings down prices, and the government is helping big health/drug companies keep competitors out. the market mechanism actually works pretty well with very little regulation, as long as collusion and monopoly are avoided wherever possible.
And lastly, the reason people work all of their lives at a grueling job for little pay is because the government makes it really hard for them to offer their services at a marketable price, by creating artificial labor surpluses. Workers also give a sizeable percentage of their earnings to government. They also have difficulty using their skills for their own profit because starting a business requires them to fill out long, expensive licensing forms, and they often are discouraged by the added tax burden. Many feel like they can’t go out on their own because they do not know the tax laws well enough, and are afraid they will break the law while trying to help themselves. However, all of these situations help the corporation for which they endlessly slave away, because it keeps the upstarts down. Hooray for taxes.