Analysis for Critical Thinkers

According to Reuters, liberal Democrat Barney Frank, chairman of the House Finacial Services Committee, is once again doing what he denied doing repeatedly in the past. He is enouraging Fannie Mae and Freddie Mac to relax their loan rules a bit because they “may be too onerous”. You may recall that this sort of meddling by Big Government in general and Barney Frank in particular was the cause of the “subprime mortgage crisis” which brought us to the financial state we are in today. Having Big Government bureaucrats mistakingly believe that they know more about running a financial institution than the financial institutions themselves has been a failure in the past and continues to be so. It is unclear too exactly why the Federal Government has been allowed to assume so much power in regards to trying to run the U.S. economy. Even if they could run the economy effectively, it is not listed as one of their job descriptions in the U.S. Constitution.

It is of course easy for partisan politicians to point fingers at everybody but themselves when it comes to the blame game. How long can people still say that this economic crisis is “George Bush’s fault”? Apparently, these finger-pointers believe that we would be fine now if only President Bush would have 1)signed a law that would have spent 2 trillion dollars of taxpayer money on failing businesses without even reading the whole law. 2) been more insulting toward successful businessmen and vow to seize and to limit the profits of anyone who tries to be successful. 3) made the successful pay the mortgages of the unsuccessful 4) assumed powers not granted to him by the laws of this country by trying to take control of the economy.

The truth is that there should be no blame against the Federal Government in regards to the state of the economy. It is simply not its job to try to run the financial matters of the United States.

At a meeting of reporters and media types last night, President Obama did a stand-up comedy routine that left his mass media fans howling. They all love Obama, except for Fox News, which everybody says hates Obama because they question some of his actions. The President was happy to throw in a dig against the sole network that dares to be critical of his policies. But otherwise, it was all fun and games.

When the President got to the apparently serious portion of his speech, he pointed out another aspect of what is wrong with the way that so many people think. He began talking about how he must find a way to save the economy. He then went on to say how he must come up with a way to make American car companies find success during these rough times. This most likely will involve more taxation, more debt, more power, and more laws.

This is a good example of what our Federal Government has become. The President apparently thinks that both of these issues are part of his job as President to solve. They are not. The best thing that Big Government can do to help the economy is to do nothing at all. Regarding the salvation of the automobile companies – there are few people less competent to try to order these companies into success than government in general and the Federal Government in particular. Even if there are people who think that it is somehow constitutional for Big Government to take over private companies and set their policies and standards – which it is not – it is laughable to imagine that Big Government has more know-how to run a company than a businessman does.

“Yeah, but look at the automobile companies – they are failing. The free market doesn’t work!” some will bray.

Incorrect. The free market will only work when it is free. Failing companies will fail. Better companies will emerge. This is the way of America, free enterprise, liberty, and competition in the business world. Start a better car company that makes better cars and I will buy one when I need my next car. This business of making me spend my tax dollars that you took from me to “bail out” companies that have proven to be a bad risk is not my idea of a good investment. Rewarding incompetence with the money of the competent is the quickest way to guarantee that only the incompetent survive. 

Big Government should stick to government stuff. As for me the consumer, just leave me alone and let me buy my car from whichever company that I think is best. Things will resolve themselves. The economy will be fine if you just let it work. Plus, we won’t have another trillion dollars of new debt wasted on companies that should have just gone out of business – and likely will anyway.