Economy Cure Thyself

This shaky economy is not going to cure itself
Keith Keller | Asheville Citizen-Times | February 28, 2009

Ah, good news — some Republican governors, like Sarah Palin and Mark Sanford, are going to refuse federal bailout money. Like former Republican President Hoover, they believe that “prosperity is just around the corner.” They think they can do nothing and the market will correct itself. There’s no need to regulate anything. There is so much criticism about the bailout from most of the Republicans, but where is their plan? To do nothing now will hurt too many and possibly finish the job President Bush began by further destroying our country. But, it not just professed Republicans. Our own Democratic congressional Rep. Heath Shuler has voted twice against the bailout. Remember in November.

RESPONSE

The headline is correct. The economy cannot cure itself under current conditions. The economy can only correct by removing all government interference in the operations of the marketplace. The economy is actually struggling to correct, but is prevented from doing so at every turn.

Housing prices should fall to affordable levels, but no, the government props them up artificially. Mismanaged businesses should fail, but no, the government bails them out. Interest rates should rise to reflect the true availability of capital, but no, the Fed lowers the rate to falsify reality and encourage malinvestment. The riskiest Americans should default on over-valued homes and become renters, but no, the government will pay their mortgages with other people’s money. The regulated market should be set free to cure the disease of government intervention, but no, the government comes bounding in once again to hamper the economy and further hamstring economic freedom.

The current interventionist administration is doing precisely the opposite of what is needed to stimulate the economy. It is increasing its interference, meddling and control and will enormously damage our world-renowned prosperity and our ability to recover and thrive — perhaps forever.

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About Tim Peck

Unaffiliated Objectivist
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