Bingo. Obama is becoming my worst nightmare and I am culpable. I voted for him the first term. Of course, I voted for Bush's first term too. I wish we could go back to the days of Reagan and Bush Sr. Those were excellent Presidents. Instead, we're going to get Monica Lewinski's boyfriend's wife as President in 2016, which means more of the same Gestapo tactics, Keynesianism, and nanny state that is destroying this country.
Here's another reason not to vote Democrat again...their stupid economic policies are gutting the middle class and creating a class of people who revel in NOT working and taking welfare any way they can get it.
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Say’s Law and the Permanent Recessionhttp://mises.org/daily/6676/Says-Law-and-the-Permanent-Recession
Given the work of Hutt and Higgs in explaining why a recession persists with no recovery, here is a list of factors causing price inflexibility and regime uncertain in today’s economy:
1) Capital market price floors, like the Greenspan-Bernanke put and QE which prevent the markets for capital goods from clearing.
2)Bbailouts of Wall Street, which are another form of price floors, and keep the incompetent management teams in place.
3) The nationalization of the mortgage market, another form of capital market price floors and house price floors, which removes the largest sector of credit markets from the domain of economic calculation.
4) Obamacare. Besides the direct costs for taxpayers, the bill introduces massive incentive changes in labor markets, the implications of which are still not clear.
5) Economist Casey Mulligan documents extensive changes in labor market incentives in his book The Redistribution Recession. He argues that these changes have created a huge implicit tax on income for the unemployed contemplating an offer of paid work.
6) The pending default of most pension plans including Social Security, the medical welfare state, US states, counties, and cities. How the default will be paid for is creating great uncertainty.
7) Uncertainty created by the threat of wealth taxation and bail-ins, as outlined in an IMF paper.
8) The surveillance of all financial transactions and expanded reporting requirements for the assets of wealthy investors
As Hayek said, the more the state centrally plans, the more difficult it becomes for the individual to plan. Economic growth is not something that just happens. It requires saving. It requires investment and capital accumulation. And it requires the real market process. It is not a delicate flower but it requires some degree of legal stability and property rights. And when you get in the way of these things, the capital accumulation stops and the economy stagnates. |
