State of the economy
And so it goes that:
The United States cannot save the world. It will be fortunate to save
itself. President Bush’s proposed bailout is not simply a socialist
measure. It is an attempt to avoid a return to correct valuations. It is
an ignorant attempt, in effect, to extend the damage that has already
been done.
“There is no use in interfering by means of a new credit expansion,”
wrote Mises. “This would at best only interrupt, disturb, and prolong
the curative process of the depression, if not bring about a new boom
with all its inevitable consequences.” When Bill O’Reilly says that the
disaster is too great, that despite his support for the free market he
sees no alternative to the government bailout plan, he is denying the
healing power of a depression. He is denying the fundamental lesson of
economics. The damage to the economic system has already occurred during
the period of false prosperity.
Our government officials are lying to themselves and to us. The false
economy and false "boom" that is created by taking money from taxpayers
and giving it away to businesses that should be allowed to fail because
they are not viable only causes an extension of the pain. Worse yet it
could cause our children to bear our pain in the name of saving our own
hides. What kind of parent does that to their children?
I believe that President Bush means well. I believe that Senator Obama
means well. They both don’t want our nation to be in the financial pain
that it’s in, but they are wrong to take away the pain without allowing
the wound to heal. The economy is damaged already by too much government
interference in markets and private enterprise. Keeping values falsely
inflated doesn’t allow the corrections needed to bring about a truly
stable economy.
Read the rest of this
article and think it over.