Σάββατο, 26 Ιουνίου 2010

Planetarch Obama and Congress seem more inclined to repeat Europe's mistakes than to learn from them.

Basil Venitis, twitter.com/Venitis, points out Rahm Emanuel's vow that the Obama Administration won't let a serious crisis to go to waste is in full swing to spread the cancer of socialism. Kicking and screaming, Europe is realizing the folly of the welfare state and taking the first small steps to return to fiscal sanity. Alas, Planetarch Obama and Congress seem more inclined to repeat Europe's mistakes than to learn from them.

U.S. federal spending topped 24.7% of gross domestic product, nearly a quarter of every dollar earned in this country. As the full force of entitlement programs kicks in, the federal government will consume more than 40% of GDP by the middle of the century. And the trajectory of government spending is projected to keep rising beyond 2050, eventually hitting an unfathomable 80% of GDP.

Planetarch Obama wants to slap a 0.15% tax on the liabilities of the biggest financial institutions to recoup the costs to taxpayers of the financial bailout. Obama hopes to tout the stupid changes as a model for other countries at the G20 Canadian junket on Saturday and Sunday.

The stupid financial overregulation package would set up a new financial consumer watchdog, create a protocol for dismantling troubled financial firms, and mandate higher bank capital standards, with the aim of avoiding a repeat of the recent financial meltdown. The stupid bill still needs final approval of Congress. Obama, who hopes to sign the legislation by July 4, urged Congress to push the bill over the finish line.

Laissez-nous faire! Let us do! Let us alone! Every time we cede more control to the government, we become more dependent on it. The better choice is not dependence on government to solve problems for us, but binding together in our community and solving problems together, voluntarily.

The cost of government regulation is truly staggering; it is also a barometer of how free we are to pursue our own interests and to determine the course of our own lives. Basil Venitis estimates the cost of regulations to be one trillion dollars in USA and two trillion euros in Fourth Reich(EU) every year. Financial costs are not the only burden. Regulations also result in a tremendous loss of one of our most valuable and limited resources, time. Venitis estimates the private sector is spending over 10 billion hours a year just to meet government paperwork demands in USA, and 20 billion hours in Fourth Reich. It is no wonder that regulation discourages the creation of new businesses, new jobs, new products, and new services. Starve the beast by fighting taxes.

One government intervention inevitably leads to more interventions in order to address the crises that are generated by the previous interventions. Ultimately the crises continue getting so bad that the government ends up taking over the entire sector. "I'm from the government, and I'm here to help." Ronald Reagan considered those nine words the most terrifying in the English language. And the government has been offering a lot of such help lately.

The government has the opposite of the Midas touch. This has been observed over and over by the reduced quality and rising prices in every private industry in which it entangles itself. Yet somehow people still seem willing, even eager, to relinquish to government control the most important and sensitive portions of our economy and society. Education, healthcare, and energy are all unfortunate examples of industries that are far too important to be left to government control when it is the market that has the golden touch.

Basil Venitis, an Athenian orator, points out the Tea Party movement is made up of average Americans who are sick to death of politicians regulating, taxing, controlling, and limiting individual choice. 85% of Americans don't trust the federal government. As Ronald Reagan famously put it, the nine most terrifying words in the English language are: I'm from the government and I'm here to help.

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