Why, after several years and trillions of dollars of bailouts, has the economy not bounced back? Every big government advocate was sure that simply replacing private sector spending with government spending would bring us back to the “good times.” Even now, with the faux debate regarding the “debt ceiling,” the big government types (in both parties) claim that it will be financial suicide to not spend more money. In their world, government spending is the cure-all.
Recently, Chairman of the Federal Reserve Ben Bernanke said that Americans, nay the world, should thank him for averting economic disaster. His arrogance knows no bounds. All he has done is print money, which has caused the cost of living to spike. So if you like paying ever higher prices for food, energy and pretty much everything else, then by all means, thank Ben Bernanke. In the role of chief counterfeiter, he has no equal.
In our world, government spending is the problem. Every dollar the government spends it has to get by taxation, borrowing or printing. None of these are good for society. Every dollar spent is one less dollar society can spend on things it actually needs and/or wants. Every dollar the government spends goes through the political ringer and there is no way of knowing if the amount spent on item A was enough, or even if item A was ever necessary to purchase in the first place. The special interests who beg loudest get taken care of the most. It is these same special interests who need to have the government continuously raise the debt ceiling, or else face the last stop on the gravy train.
As many actual free-market economists have recently wrote, the U.S. should default on its debt obligation, or at least not raise the debt ceiling. Or, to put it more correctly, the U.S. is already defaulting by simply printing money to pay its bills. At least an actual default would allow U.S. taxpayers to avoid paying for the states mistakes. As it stands, U.S. taxpayers are on the hook to pay back various bondholders. As far as I know, no taxpayer has ever signed an agreement with holders of bonds, yet the taxpayer is expected to bail them out.
So as the unjustly rich (that is the ever-growing number of people who live as a parasite, courtesy of the state) get richer and the unjustly poor (those that do not get privileges from the state) get poorer, the game in Washington continues. No state-sanctioned economist has a clue how the economy works, or if they do then they aren’t letting on.
More government spending is not the solution. More ridiculous regulations written by large corporations and banks for their own benefit are not the solution. These are the types of policies that have created the mess we are in. Sadly, these are the only kinds of “solutions” that ever seem to come out of Washington. I say, let’s allow that stinking bog to return to its former glory as productive farm and wood lands.