The View From 1776
Free Enterprise and Government Regulation
Lawmakers can dismount from their soak-the-rich hobby horses. Reality curtails business excesses; no need for help from Congressman Barney Frank.
- There is world wide liquidity looking for places to invest besides Treasury notes. Foreigners are buying our personal debt as well as corporate and national debt. This has provided many with ways to take advantage of that situation to line their own pockets. As you state, the market will eventually sort this out.
However, there is more to this than Barney Frank, greed, people losing their homes, or investment money, etc. The government is a co-conspirator in all the things wrong with this scene. For decades we have tried to do various things, including inflating our way out of the unsound fiscal policies we have.
That "inflation" process means we get to pay back loans with dollars worth less than what they were when the loan was made. This may sound good, but, there are long term problems that are now coming home to roost.
This is another symptom of a nation in decline and the people, just as much as the government is why it is in decline. We need huge increases in tax revenues to pay for the social programs and things we believe we need. But, we are also unwilling to pay the tax that is needed. We want it passed on to others, either here, or in other nations through loans we pay back with devalued currency or in the prices of exports that contain taxes on manufacturing and service industries that export to other nations.
But, as our economic woes have started to rise, we are facing more and more problems. Businesses are leaving for lower tax nations. Investment money is leaving for that same reason and for a growing consumer base that makes the U.S. consumer base smaller and smaller every day.
We now have, according to the Government Accounting office, more liabilities than assets and a $50 trillion unfunded liability that places a $400,000 burden on every full time worker at the same time 78 million workers will be leaving the work force to retire.
Yes, the markets will discipline both the greedy investors and the not so greedy who were convinced they were making wise choices. It will also cause millions to lose their homes or have to make huge sacrifices to keep them.
While we need government to protect us from all sorts of people, that protection always comes with a cost. We currently have no way of paying the costs of all we already have government doing for us and protecting us from. Even our own government admits it is on an "unsustainable course" that will cause us to lose much of our standard of living.
Still, in defense of Barney Frank, the majority of the people in the nation are still calling for more, not less government. It is the people of this nation and human nature in the evolution of great nations that has to be overcome if we are to avert the coming crisis.
How do you thwart human nature when those "humans" have no desire to change? This nation has to hit some type of bottom and sacrifices start being made before the "human nature" will change and reforms be sought. While that is happening, "human nature" in other nations is causing them to "jump on board" the "booming economies" and invest, start businesses, and take investors for rides in poorly regulated stock markets.
But, that very lack of regulation makes investing easy and the honest recipients of the money able to grow rapidly and reward many workers, investors and "tax collectors" as they "boom." Now, even people from here, in this well regulated market are sending their dollars overseas. How will Barney Frank "protect" them? People will lose and people will gain but, the world and human nature will go on long after Barney Frank fades from the scene.
We need regulation. We need protection, but, we also need to understand as citizens of this nation that we, not somebody else has to pay for those things. As long as we try to "pass the buck" you won't see this nation rise again to what it used to be.Posted by JanPBurr on 07/27 at 09:06 PM