“That government is best which governs the least, because its people discipline themselves.” – Thomas Jefferson
There is a lot of hype in Washington this week, a lot of short-term thinking, but very little honest reflection and philosophically sound governance based on the long term prospects of the American economy. Jefferson was right: our financial markets have fallen into a cycle of government dependence and therefore no longer discipline themselves. The American economy has lived beyond its means; to deny this is to declare yourself ignorant and unfit to govern. We have floated on a cloud of credit, and believed ourselves to be in heaven, and though we have ventured far from earth, the latest liquidity squeeze has allowed us to see just how far we must fall when our economy’s bill comes due. Though the $700,000,000,000 proposal before you may indeed postpone the payment date, the American people will eventually have to pay dearly for living on money that has been given value–not by production–but by irrational faith, and you can be certain that every postponement will make that future payment more painful than it would be today. Do not be convinced that there are no free market solutions to this crisis. The unspeakable ideal of economic freedom will pump more liquid capital into our financial markets than the government ever could, and more importantly, the money generated by such a system would be sound and valuable. The chronic risks of moral hazard and inflation this bailout poses far outweigh the risks of a brief credit crisis caused by market-liquidated debt.
We cannot become wiser before we admit that we have been foolish in the past. Market interference was, in most instances, foolish. The Community Re-Investment Act was foolish. Taxing capital gains was foolish. Turning over Congress’ constitutional money-coining responsibility to a private, secretive organization was foolish. Encouraging irresponsible lending through never-ending taxpayer bailouts was foolish. Artificially low interest rates were foolish. Price manipulation was foolish. Giving up on sound money was foolish. Losing faith in freedom was foolish. Ours, however, is not a fated existence. Nowhere is it written in stone that we must remain foolish, or that we cannot obey Constitutional principles. If, as Senator John McCain likes to say, you “came to Washington to change Washington,” now is your chance to realize your lofty dreams. Crisis is the proper time for reform. Now is the time to embrace real capitalism. The American people should not be told to fear freedom, as they are being told now, but to embrace it. The time has come for Americans to be rewarded for their own successes, and held accountable for their own mistakes. The time has come for the ambitious legislators in Washington to stop fiscally abusing the children of this nation.
1994, 2000: Remembering the words of Goldwater and Reagan, American median voters want smaller government and balanced budgets, so they elect Republicans; in return, they receive the most rampant growth in government (and public debt) this continent has ever known. 2006: the median American voters want out of a conflict that is unrelated to their security or welfare, so they elect Democrats; in return, the war’s funding is not cut off but greatly increased. 2008: the American people want no taxpayer bailouts, they want to end the bubble-blowing policies of the Federal Reserve, and they want to stop the growing cycle of debt that has ruined a once free economy; in return, they are presented with the largest taxpayer bailout ever, a more powerful and secretive central bank, the largest economic bubble-blowing scheme ever contrived, and more debt than they can ever afford to pay off.
The blindfold has been removed from the American people. They are awakening to a pattern that reveals self-government as a myth. The extraordinary actions of the federal government are only serving to remove its mask, revealing its nationalist, socialist, imperialist, authoritarian, unresponsive, evil face. We can accurately predict that, on matters of true importance, when a particular course of action is supported by more than 70% of the American people, their government will pursue the opposite course, pretending the people are a force of no consequence–an attitude to be expected of King Louis’ court, but not of a republic’s elected leaders. I need not remind you of the French response to that attitude. The United States government has lost so much legitimacy that it may not survive the latest proposal, should it pass. The American people are well-aware of the truly criminal nature of any financial bailout; a huge one will both injure and offend them. Moreover, it will not come without consequence; their lanterns are burning, their pitchforks are raised, and they are prepared to halt the criminal acts of this government, should it become necessary for them to do so.
Filed under: Corruption, economy, Politics | Tagged: America, authoritarianism, bailout, constitution, CRA, credit, debt, democracy, economics, economy, goldwater, imperialism, inflation, legitimacy, mccain, money, nationalism, obama, Politics, reagan, Ron Paul, socialism, taxation, thomas jefferson, United States | 2 Comments »