Economic Lunacy

9/13/2010 – Larrey Anderson –
I know logical lunacy when I see it. I may not be an economist, but as one trained in logic as a philosopher, I have been horrified by the recent economic policies of both Presidents G.W. Bush and B.H. Obama.

Let’s start with Bush and the first TARP bill. My heart broke when Bush announced the TARP program. I understood that the $750-billion blank check (to be spent at the discretion of the next Secretary of the Treasury — who turned out to be tax-cheat Timothy Geithner) might well trigger the end of our constitutional republic. [Read more…]

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The Obama Recovery

Obama Recession8/23/2010 – Jeffrey Folks –

During the same week in which the president was vacationing in a $50,000-per-night home in Martha’s Vineyard, half a million Americans were standing in line, waiting their turn to apply for unemployment benefits. Those benefits are about $400 a week, not enough to put food on the table, pay the mortgage and car payments, and cover medical and other expenses. Not only that, but they run out (or used to) at 26 weeks. Even with Congress’s election-year largesse, which has tacked on an additional 73 weeks, unemployment benefits must run out at some point. More and more Americans — those who have begun calling themselves the 99ers — are now arriving at that point. [Read more…]

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Economy Needs Heart Transplant, Obama Offering Band-Aid

Economy Needs Heart Transplant Not Band-AidAmerica’s economic situation needs an emergency heart transplant, but Obama and the Democrats keep offering band-aids instead. We need a major change in government economic, tax, and fiscal policies not more government bailouts. Yet the president is doing nothing to reverse the enormous uncertainty fostered by his own administration’s aggressive anti-business and pro high-tax initiatives and rhetoric.

In the latest indication that our president has no clue why businesses are struggling and unwilling to hire, Obama is trying to force through another $30 billion government bailout program to “help banks boost lending to small businesses.” Unfortunately, it’s not the lack of available funds that are stopping businesses from expanding and generating new jobs. It’s the massive economic uncertainty and instability created by misguided government mandates (especially the oppressive regulations of ObamaCare), coupled with the massive tax increases coming in January 2011, that have spooked companies and forced them into defensive economic positions. [Read more…]

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Finding John Galt

John Galt8/16/2010 – Henry Oliner –

John Galt is the mysterious hero lurking in the background in Ayn Rand’s infamous novel, Atlas Shrugged. He is the industrialist who went into hiding and led a strike of producers fed up with the physical and moral encroachment from a government of moral supremacists who rationalized theft with childish notions of fairness but no conception of the actual production of wealth. That synopsis should also explain why Atlas Shrugged, first published in 1957, is having a very strong resurgence in popularity.

I meet with two different groups of independent business owners focused in the southeast and their perception of current business conditions is almost unanimous. They are angry. They face conflicting and unclear regulations, and a near certainty of increasing taxes . They are impatient. Many are not profitable and are unable and unwilling to tolerate customers who cannot pay, employees who do not think, banks without judgment, and a government that despises their efforts to create wealth and jobs. [Read more…]

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Ronald Reagan: Whatever Happened to Free Enterprise?

President Ronald Reagan
President Ronald Reagan

From the archived pages of Imprimis, the monthly speech digest of Hillsdale College, President Ronald Reagan reminds us that economic freedom is an absolute necessity not only for political freedom, but for all freedom. That freedom must be fought for and protected in every generation. That the business community must join this fight and not remain passive.

“It all comes down to this basic premise: if you lose your economic freedom, you lose your political freedom and in fact all freedom. Freedom is something that cannot be passed on genetically. It is never more than one generation away from extinction. Every generation has to learn how to protect and defend it. Once freedom is gone, it’s gone for a long, long time. Already, too many of us, particularly those in business and industry, have chosen to switch rather than fight.”

President Reagan clearly understood that government action is the biggest threat to our economic freedom and personal freedom. He correctly identified the government as the problem, not the solution: [Read more…]

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The New York Times, Cheerleader for Higher Taxes

The New York Times Cheerleader for Higher Taxes
In what can only be described as a partisan, pro-Obama puff piece, The New York Times has now proclaimed on its Economix Blog that tax increases are the best way to “stimulate” our economy and help America reach “fiscal sustainability”:

The single biggest step our government could take this year to address the structural deficit would be to let the tax cuts expire. And a credible commitment to long-term fiscal sustainability should reduce interest rates today, helping to stimulate the economy.

[Read more…]

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The Death of the Dollar

Death of the Dollar8/6/2010 – Vasko Kohlmayer –

Nothing can save our financial system in the long run. It is doomed to collapse. This is inevitable, because our government controls and manages its very foundation — the dollar.

The federal government began its takeover of the dollar in 1913 when it established the Federal Reserve Banking System. Prior to that, the dollar was a real store of value. In the period from 1783 to 1913, there was a long period of currency stability with virtually no inflation. If you saved one dollar in 1800, your great-grandchild could buy roughly the same amount of goods with the same dollar one century later. [Read more…]

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The Worst of Both Worlds

7/24/2010 – Henry Oliner –

Karl Marx understood that capitalism is intrinsically productive but saw an inherent unfairness in any value other than that provided by labor. Marx also understood that individual incentives to produce would inevitably lead to overproduction and painful contractions. To avoid these contractions and their impact on labor costs, he believed the proletariat should, and inevitably would, exercise control over the means of production. Some true believers insist that he sought a utopian ideal rather than an authoritarian state, but the control of production by the state became essential to their objective. [Read more…]

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Wealthy Shift Their Income to Avoid Higher Taxes

6/8/2010 – Robert Frank –
In his Wall Street Journal op-ed Monday, famed supply-sider Arthur Laffer argues that higher taxes on the wealthy rarely work because the wealthy simply shift their income.

President Obama’s upcoming tax increases, he says, are encouraging the wealthy to take cash and income off the table this year, robbing from next year’s growth and spending. As a result, he says “The economy will collapse in 2011.” [Read more…]

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Free to Choose

6/9/2010 – John Stossel –

America’s current struggles notwithstanding, life here is pretty good. We have a standard of living that’s the envy of most of the world.

Why did that happen? Prosperity isn’t the norm. Throughout history and throughout the world, poverty has been the norm. Most of the world still lives in dire poverty. Of the 6 billion people on earth, perhaps 1 billion have something close to our standard of living.

Why did America prosper when most of the people of the world are still poor? [Read more…]

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Across America 15 Million People Still Unemployed

US Unemployment Situation Grim
US Unemployment Situation is Grim

Across America 15 million Americans are still out of work and unable to find jobs. The latest numbers from the Labor Department indicate that only 41,000 private sector jobs were created last month. Of the 431,000 new jobs added in May, 411,000 were temporary census workers hired by the government. Despite Obama’s assertion, made just days ago, that “the economy is improving and that the economic stimulus legislation passed a year ago was having a positive effect” there is little to cheer about. The president’s unrealistic predictions that “the economy is poised to start adding the jobs people need” were clearly misguided and off the mark.

These are predictable results given how aggressive this administration and the Democrat controlled Congress have been in promoting socialist policies that stifle economic activity and unreasonably punish responsible corporations and businesses. [Read more…]

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How to Cripple the Free Economy

Socialist Policies Undermine American Economic Prosperity

The socialist policies implemented by the Obama administration and the Democrat leadership undermine America’s economic prosperity and prolong the misery for millions of companies and workers. Despite passing multi-trillion dollar government tax and spend initiatives, numerous bailouts of failed businesses, and repeated extensions of government benefits, Americans are suffering and the economy is languishing. Nationwide the unemployment rate has risen to 9.9%, while mortgage defaults and foreclosure rates have surged to record numbers.

Even with the tens of billions of dollars Congress has spent on preventing consumer mortgage defaults and home foreclosures, things have not improved much. How could they? Such government bailout measures are temporary band-aids that fail to address the structural problems our economy faces. They only delay the inevitable and push the problem further down the road. It doesn’t matter that house payments are now lower and the government has picked up the tab for a few months. If Americans cannot find a job or raise the capital to start a business they won’t have the money to pay even reduced mortgage payments. [Read more…]

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