Sunday, March 28, 2010

Best Medicine for America

Capitalism with a the best medicine for America. And America had better go for major doses of that medicine if she wants to continue competing and surviving in these modern times.

Let me start with a quote from Ron Paul on his website:

"What the Federal Reserve still fails to realize is that intervention in the economy is always harmful. Unlike the late French economist, Frederic Bastiat, the Fed only sees what is seen, the superficial results of its policies, and not what is unseen, the effects of its monetary intervention throughout the economy. Monetary inflation leads to malinvestment and causes the boom phase of the business cycle. Once the malinvestment is realized the bust phase occurs, and these malinvested resources need to be liquidated in order for the economy to recover. But the Fed actively works to prevent this liquidation and does everything in its power to continue inflating in order to prolong the boom. The first act of intervention begets the second and subsequent interventions, each bigger than the first, as each economic bust gets larger and more severe.

The idea that a handful of brilliant minds can somehow steer the economy is fatal to economic growth and stability. The Soviet Union’s economy failed because of its central planning, and the United States economy will suffer the same fate if we continue down the path toward more centralized control. We need to return to sound money, bring back free markets, and rein in the Fed."

It doesn't take reading too many of my blogs to know I stand for liberty, small government, free markets and personal sovereignty as ideals to live by in this short lifetime.

We live in an age of "hardliners" versus the growing centrists or "moderates" within the masses. We live in an age where the masses yearn for more freedom and information while governments and other institutions strive to control the masses with more regulation and mis information. The extremism of the hardliners continues to elevate from all sides. These uncertain times encourage more religious fanaticism with fundamentalists of all persuasions fanning the flames of "holy" war. The "haves" are fleeing oppressive, authoritarian regimes with their brains and their bucks while the "have nots" continue to justify their "Robin Hood" mentalities of redistribution. None of this is adding up to a potential for peace in our times.

It is time for a fundamental change in the world. It is time to let markets and economic realities go where they must go. Prices must fall in the highly leveraged first world countries while inflation WILL rise in emerging economies. If governments and institutions will stop trying to manipulate markets, currencies and laying down unrealistic taxes on their people...the markets WILL bring reality to the situation in short order.

America can and should lead the charge towards this new agenda. Instead of the current government's attempts to grow a larger government requiring a larger budget (out of the taxpayers hides) to run their never ending thirst for power and control...the government should simply be governing the legalities of trade contracts and striving to assist private enterprises within their realm to be more competitive and innovative in the world marketplace. Subsidies and manipulations of markets that end up lining the pockets of a few and the politicians themselves should be curtailed. Even altruism should be left in the realm of private agencies who are enabled by their governments to help in global disaster relief without the political limitations and bureaucracies normally associated with such pursuits.

The main medicine we Americans must take is whatever medicine will put everyone back to work again. Whatever will make us profitable again. Whatever will make us debt free again. Whatever will once again allow us to hold our heads high as the most productive, innovative, moral and just nation on the face of the earth again. Our immoral level of consumerism, contamination of the environment, and manipulation at the end of a gun barrel must be replaced by thriftiness, discovery of cheaper and cleaner energy sources, and fighting our wars competing with money, not warships.

I understand that to undo many of these positions we have put ourselves in will take decades and generations. We can't disarm against our enemies TOMORROW. But we won't start until we have a renewed way of thinking. Unfortunately I don't hear many of these reformation voices in the media or in books. I only see more hype, sensationalism and tabloid journalism twisting the minds of the simplistic public. Instead of positive, constructive ideas on how to change the world, I only see extreme criticism and hate spewed in most of the emails and news I see online. Even on this blog, I challenge myself to examine the alternatives or answers to problems instead of just jumping in on the bandwagon of criticizing what is going on.

While these issues are much bigger than any one agenda item, a small example of how America has missed the boat on applying capitalistic principles to its problems is in the latest health reform bill the government has apparently gotten through the process. While I think SOME good may come from this new approach to healthcare in America (getting coverage for people who can't afford insurance), I think the cost and quality of healthcare overall will go down. I am just guessing, because I am not a professional in these fields. But in talking to a variety of the professionals who are, I find them quite conflicted or divided on this as well. While most educated, productive professionals at the core believe in capitalism and markets, not wanting to be dictated to what price they can charge for their time or services...they also struggle with the impossible costs of healthcare solutions and the growing demand for those services in a time when fewer can afford it. To that end, I think those with pure intent for improving access and relief to the poor and disenfranchised is a noble cause. Unfortunately, we are now going to see government "insiders" trying to siphon off as many huge contracts and revenues out of these huge budgets as they can. There will be shortages because government is going to try and control supply and demand. Many of the best products and practitioners will simply withdraw from the industry because they don't see it profitable to participate. Some Doctors will become real estate brokers...some real estate brokers will have to play doctor. I hope I am wrong, but I am afraid I am not.

In this small illustration, I think what was missed was an opportunity for "market forces" to organize and communicate clearly to government entities a sustainable plan for staying competitive while yet helping to fill the gap/needs of those less fortunate. Capitalism doesn't HAVE to be greedy. Capitalism doesn't HAVE to be extreme or selfish in totality. Most "Capitalists" I know have a social conscience...a heart if you will. Its just that balanced Capitalists would rather teach fishing than just provide fish.

The Republicans truly missed the chance to come up with better solutions in this part of the battle. Instead of presenting reasonable, viable plans of their own and selling it to the masses...they basically just went extreme and nasty against anything and everything Obama and the Democrats were pushing forward. Even the "tea party" movement got nasty and divisive instead of sweet and inclusive. Anger often overcomes reason...which is why we should never allow ourselves to get pushed to such an angry extent where we lose our objectivity and rationale. Instead of REacting, we should be taking action.

When it comes to all our key challenges in America right now; jobs, security, debt, and good health...we must reverse the pyramid of support to swell from the ground up...not the top down. The more individuals take care of themselves and their own, the sooner governments and institutions are dis-empowered from having dominion over our sovereignty. The sooner we all realize and take responsibilities for ourselves, control our monies and take better care of our own health...the sooner we will be free and objective enough to even HAVE a conscience.

Somehow, the modern day Robin Hood story has gotten reversed. Instead of a leader stealing from "the State" to give to the poor, "the State" is robbing the leaders to then give SOME OF IT to the poor. This story has to change before the State and the poor find themselves completely destitute of brains and funds.

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