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Government Intervention Is Not What We Want

January 9, 2009

I, like most people in America are tired all of this talk to “save the economy”, as if there was some magic cure and only those in Washington are to be trusted with it.  It does not take much research for people to see that a centralized take-over or “Lazarus” affect to the economy by the government has never worked.

Our representatives in Washington seem to ignore us at the most crucial times in the last year. When we were all saying no to the bailouts, they made sure it went through. The government seems to be giving billions of dollars away without our consent; I bet most people did not know about the bailout loan to John Deere & Co., or how other industries are putting out their hand for a bailout, or how the auto-industry was bailed out without a vote from the people.

I feel very betrayed by my government, and I think a lot of people feel this way as well. Most of us are worried that the next administration will makes things worse, not better.

The new deal prolonged the Great Depression and a new “FDR” type will do the same with this economic downturn. The headlines are already reading about how many new jobs the government will create, how a trillion dollar stimulus package will be proposed, and how new spending will help us in these times.

Any good economist knows that when you take money and move it somewhere else you are in fact going against the market. Putting the money where the market has not put it slows down the self-correcting market, lengthening the time of depression. There is only so much capitol out there and no government will ever know where it should go, that is why the only way for the problems to end is to let the market decide, to let the ride come to an end on it’s own.

I propose that the government does nothing in regards to bailouts, or stimulus packages. The only positive thing the government can do is to have massive tax and spending cuts, one without the other is useless.

The Federal Reserve is another culprit here. It was established to help protect us from the “horrible” free market economic downturns, it has in fact done the opposite, thus far creating the downturns. When the Federal Reserve artificially lowers interest rates, they are encouraging economic growth with easy credit, while discouraging savings, all apart from what the “real” market is saying. They keep the “pedal to the metal” for too long and you have massive over-building and bad investments, thus creating an economic ‘bubble’. Once the people and market realizes the bad loans and over building the values go down or the loans go bust, and so does the “bubble”.  The Federal Reserve should be regulated more, and play a lesser role, especially with interest rates.

When all is said and done, whatever the outcome, nobody can say that those of us who were saying ‘no’ were silent. We are here, and we are warning against this kind of government activity. We spoke out during the bailouts, and I hope that these rough times will end as soon as possible.

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