Jake Towne’s State of the Union ReactionSubmitted by legalizeliberty on Fri, 01/29/2010 - 18:06
Today I spent part of my day at a local small family-run business, and listened to the owner gripe about excise tariffs on equipment from abroad, immigration difficulties, and frustration about the redistribution of wealth from his business to the federal government’s warfare and welfare programs. As I was leaving to make another house call and visit a single mother of three children, he had one request which was to listen to the 1970 song “Monster” by Steppenwolf. The ending of this song is an appropriate lead-in to my comments on today’s State of the Union address (transcript here).
While his oratory skills are to be admired, President Obama assumed the role of a master central planner where the government must intervene or else the economy fails. The key planners in any market economy should be individuals, not the government as I learned while living in China. Obama made no mention of the true root cause of the depression – the excessive money-printing and credit expansion of the Federal Reserve. There was no mention that government bailouts, stimulus plan spending, and interventions have changed what would have been a sharp and brief recession into a prolonged depression. There was no mention that bank balance sheets are still impaired by billions of toxic assets and deficit spending in all areas of government is out of control.
There is no mention that the Bureau of Labor and Statistics U-6 unemployment level is at 17%, and reputable non-government sources have unemployment estimated at 22%, which is a more reasonable number if one walks around the neighborhood in the Lehigh Valley. Government central planning has been a true disaster as I pointed out in “The Government’s “War” on Main Street” and “Why the Stimulus Plan Will Fail… (And a Better Alternative).”
The problems of excessive spending will not be cured by yet more spending.
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