Our country, right now, is treading on very dangerous ground, and I think few people realize just how dangerous it is. In the past few months we have seen the Congress of this country authorize a “bailout” of the financial industry, our President has said that he will bailout the auto industry (to be referred to as the UAW bailout henceforth) against the wishes of Congress, and the American People, recently that same president was also quoted as saying that he “had abandoned free market principals to save the free market.”
The financial industry came from a budget that Congress could not fund without borrowing the money from other countries. That alone should set off alarm bells in your head. In addition to this the bailout is dangerous because the federal government is taking ownership stakes in the companies it bails out. Oh, and the companies don’t have a choice if they get bailed out or not, the government tells them. Not only is this bad because the government is taking partial ownership of these companies, but also because the government is getting to pick the winners and losers, not the free market.
The President deciding to unilaterally move forward with the UAW bailout is also dangerous. This is dangerous in that he is going against the will of Congress, going against the will of the people, and once again, the government is picking the winners and losers. The House first passed the UAW bailout, only to have it stopped by the Senate who recognized that it was in fact a bailout of UAW, not the manufacturers. The Senate also realized that the bailout would only serve to postpone the destruction of the American auto industry unless major changes were made to make those companies competitive. Ask almost any American citizen, who is not employed by
UAW the auto manufacturers, or doesn’t have a UAW family member if they want the UAW bailout passed, and most of them will tell you no. In moving forward with the UAW bailout we are funding three auto makers with government money, meanwhile “foreign” marks such as Toyota and BMW that are actually owned by some American via the stock market, and employ many Americans in South Carolina, Missouri and other states survive based on their profitability.
The concept of abandoning free market principles to save the free market is really dangerous. Basically, you’re poisoning the body to keep it alive. This works with Chemo therapy as a treatment for cancer, but its a dangerous proposition when it comes to governance and economics. By abandoning free market principles in favor of government control, you are giving power hungry people, more power. I can’t think of very many instances where the power hungry politicians in Washington voted themselves more power, to later relinquish that. Just like the politicians in Raleigh passed a “six month temporary sales tax increase” in 2002 that is still on the books today. Its like the saying goes, “absolute power corrupts absolutely,” we cannot afford to continue giving government this much control over the economy.
I said all that to say this, the dangerous ground we are walking on, is on the edge of a slippery slope into fascism. One operational definition of fascism is that it is private ownership of the means of production, with government control. Right now, in this country, many people are afraid about their future, and they are turning to the government to solve their economic problems. It’s already been shown, by FDR, that government can’t solve a depression/recession. The country was no better off in 1938 than it was in 1932 when FDR took office and started implementing all his government programs. The thing that saved the country then was the necessity of production for the war effort, not the Tennessee Valley Authority or any other social program. The fascist Nazi party came to power in Germany as a result of the hard economic times the country was facing. The people, out of their fear, voted in a party that promised to create jobs and income through government control. We all know how that turned out for them. The circumstances in Russia were similar prior to the Bolshevik Revolution, which led to Stalin and Lenin. Don’t let fear and uncertainty in these economic times lead you to make similar mistakes.