How Government Economic Intervention Exposes Scoundrels

[Post Summary]

My beloved put his hand by the latch of the door
—Song of Solomon

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These are days separating the brave from scoundrels. The former recognize our utter bankruptcy and propose solutions harmonious with the unique place the United States of America has in history. They understand how our government is formed as a bastion against tyranny.

The latter, on the other hand, are terribly insensitive to our nation's plight. Typically, they hold money above human life.

You'll read things like, "The equity markets have paid close attention to the expensive governmental 'fixes' that have been proposed and, in too many cases, enacted by democrats and republicans, " whining "President-Elect Obama has even prepared the public for Trillion dollar deficits over the next several years."

Then they go on to claim, "Given the explosive growth in governmental spending over the last few years we should be entering a golden economic age rather than a recession if governmental spending was the true secret to economic growth."

The focus is all on "spending," with nothing — nothing! — said about the manner in which tax dollars are directed.

This distinction is critical. And those who fail to recognize it are either oblivious to history or are scoundrels.

Thus, they cite "research, going back to the 1940s, [suggesting] it takes $7.14 of governmental spending to have the same economic impact as $1 of private sector spending." Yet the extent to which government spending has created efficiencies in the private sector resulting in such disparities goes untold.

Do you suppose the private sector could thrive so handily without critical infrastructure built by government?

Name me one corporation (or consortium of private companies) that could have built the interstate highway system ... the nationwide rail system ... the electrical grid ... or any number of valuable, public assets (the list is rather extensive, indeed). Without these things — made available through government exercising the will of the People — do you suppose the "research" cited above would be so seemingly conclusive?

David James, you might know something about the stock market, but your grasp of principle responsible for making the United States a powerful nation is abysmal.

—Tom Chechatka