The View From 1776
Sunday, July 10, 2011
Counter-Productive State Planning
Despite Obama’s many economic interventions, the economy remains stagnated at the worst unemployment levels since the Great Depression. Oblivious to reality, liberal-progressive bureaucrats remain confident that they can employ the methodology of Lenin’s Gosplan and, this time, make it work.
The point is not that liberal-progressives, beginning with Franklin Roosevelt in the 1930s Great Depression, should have done more. It’s that economic well-being is decreased by government intervention. It’s that expecting any president (and any chairman of the Federal Reserve) to control the economy is a dangerous delusion.
President Reagan’s positive results were achieved by his stepping back from economic intervention. At the same time, Fed chairman Paul Volcker brought inflation under control by stopping the Fed’s inflationary expansion of the money supply.
Still in thrall to the secular religious dogma of socialism, Obama and Fed chairman Ben Bernanke, like zombies, trudge along the path that led Franklin Roosevelt’s New Deal to produce the worst economic downturn in our nation’s history.
As I wrote in February, 2007, (A New Deal Frame of Mind):
With our radical left-wing Congress setting forth on a mission to preserve and enlarge the welfare-state, it