Sunday, February 15, 2009

Let's Don't Forget the Forgotten People

Every day in the market, millions of products get made, shipped and sold, from the simplest pencil to the most complicated computer. Individuals, households, and companies use exchange, contracts, prices and the other institutions of the marketplace to coordinate their behavior without central direction.

All of those people are "doing something" to create wealth, but because they do it without a plan or package or program from Washington, they are often overlooked when the politicians take center stage.

When Obama asserts that only government has enough resources to get us out of the current situation, he conveniently overlooks the fact that the resources government makes use of are created by those same forgotten people.

From Steven Horwitz's article "The 'Forgotten People' Are Already Doing Something for Economic Recovery," in the DC Examiner


At 2/15/2009 10:55 AM, Anonymous Anonymous said...

Yes, but the politicians can't take credit for the efforts of the Forgotten People.

If we had an honest news media these people would not be "forgotten".

At 2/15/2009 12:57 PM, Blogger Joe Armendariz said...

good point Lars.

At 2/15/2009 2:30 PM, Blogger rbblum said...

In review of the writings of Mark J Perry as well as reading the multitude of thoughtful responses by most of the participants (following Mark J Perry's writings), two thoughts came to mind: No matter how intelligent, insightful, righteous, and accurate an individual may be in a viewpoint presented, the political class (within the political-economic sphere) can always trump the best interest of the country and the people. Though, however true that may be, it is the basic common denominator of micro economics that can trump/overcome the gamesmanship of the political class.

If only there could be an effective manner or mechanism in alleviating the lack of accountability and transparency of the political class and parties responsible for oversight in order to maximize the potential of the macro economic world . . . for the sake of the country and the people first and foremost.

Any thoughts of accomplishing this central thought (creating and implementing a strong block within the political-economic foundation for accountability and
transparency) would be appreciated, professor.

At 2/15/2009 3:40 PM, Blogger PeakTrader said...

Obama's stimulus will do almost nothing for the economy in the first half of '09 (when the economy needs it the most). Nonetheless, I agree, the recovery is already underway.

It should also be noted, the U.S. government has generated and captured real wealth, including through smoothing-out business cycles and trade policies.

The Poor Deal

The $787 billion stimulus bill (or over $1 trillion when the interest from borrowing is included) is more than twice the size as a proportion of GDP than FDR's New Deal in 1933 (i.e. 5% compared to 2% of GDP). However, there remains more work to be done, as Obama has stated: "To do the work that needs to be done."

The free market has been a complete failure and without this stimulus, Great Depression II would've been inevitable. The government will now be micromanaging the economy, including through tax and spend policies, to make sure Americans behave appropriately.

It's a foregone conclusion, the Bush tax cuts will be allowed to expire in 2011. Windfall profit taxes will be imposed (e.g. for the oil and health care industries). The gasoline tax will increase substantially. The most productive in society will be taxed at a higher rate, the least productive will receive generous tax credits, and the unproductive will receive more government assistance (this of course, will make society more productive). Government will find many ways to tax and spend.

So, government will be busy reshaping America, although it has accomplished much over the past three weeks. Given enough pork, even moderate Democrats will vote for liberal policies. If the Democrats won just one more Senate seat, they wouldn't need those annoying Republicans to pass everything they want. Most Americans understand, government is not the problem, it's the solution.

At 2/15/2009 6:28 PM, Anonymous Anonymous said...

The Democrats have a name for these "forgotten people" - serfs.

Now, just shut up, turn over your money and your guns and get in line.

At 2/16/2009 4:21 PM, Blogger juandos said...

"To my way of thinking, economic recovery requires the creation of wealth,something Congress is not even remotely capable of achieving. By contrast,the American people are already doing something to create wealth and hasten the recovery, even if we are the ones forgotten in the battle over what Washington should do"...

A really great sentiment...

Still doesn't this give Congress and Obama yet another target for more extortion of the productive?


Post a Comment

<< Home