The Root Problem

The Weekend Edition…

We know that I’ve talked about Health Care, Afghanistan, and the like. But what’s the root problem? And what problem will have the most long-term effect?

“The biggest threat to America right now is not government spending, huge deficits, foreign ownership of our debt, world terrorism, two wars, potential epidemics or nuts with nukes. The biggest long-term threat is that people are becoming and have become disheartened, that this condition is reaching critical mass, and that it afflicts most broadly and deeply those members of the American leadership class who are not in Washington, most especially those in business.” Peggy Noonan with the WSJ on October 30th, 2009

She goes on to say that in the recession that we had in the 70’s and early 80’s people saw a way out. People saw the light at the end of the tunnel. They had trust in something. (God is a good one.)

Not so anymore, she says “Americans are starting to think the problems we are facing cannot be solved.”

I think our problems can be solved. Absolutely. There’s just one thing that keeps making the problem worse. One thing that we need to get out-of-the-way before we can use all of those wonderful solutions. The root problem.

Government

Yep, as Ronald Reagan said “Government is not the solution, government is the problem.” Government has historically (and presently) been the nemesis of economic growth. Often where the government tries to help, it ends up hurting. Let’s look at a few.

Offshore Drilling:

As you may or may not know, President George Bush lifted the ban on offshore drilling in the Outer Continental Shelf (OCS). And then President Obama put the ban up for reconsideration in February. And the ban was reinstated in September.

What’s so bad about that? Environmental regulation during this economy is not a good idea. We would have benefited from offshore drilling in the OCS.

If we allowed drilling in the entire OCS the U.S. would generate $1.8 Trillion in royalties. The job creation and economic development associated with the drilling would add $10 Trillion to the U.S. economy. Bill Kovacs (Vice President for the Environment, Technology & Regulatory Affairs Division, U.S. Chamber of Commerce) July 22, 2009

Medicare and Medicaid:

“For instance, Medicare and Medicaid employ price-fixing, which is illegal for any private organization.  The government decides on the worth of medical services and the providers of those services must comply.  The government therefore utilizes unfair practices to establish a monopoly, transferring costs to the private sector, artificially magnifying the cost of private insurance and hiding the true cost of government coverage. When Medicare was passed senior citizens were promised that Medicare would not prevent them from utilizing private primary insurance if they wanted to. This assurance was false. Private primary health insurance has become all but impossible for persons over 65 to obtain.

Medicaid recipients, as well as and those on military health plans, are significantly restricted in their choices. This lack of choice has stifled competition. Contrary to the claims of the current administration, every time government has gotten involved in health care, competition has been suppressed by practices that would be prosecutable if carried out by private companies.  Far from promoting competition, a government plan will eventually eliminate private health care, thereby eliminating all competition.” American Thinker July 7th, 2009

Yet another failed government program with lots of “oops we didn’t think about that” scenarios.

Cash for Clunkers:

Jame Shrek with the Heritage foundation said that Cash for Clunkers “has destroyed valuable used cars that dealers would have resold to low-income Americans.” And that it has added “$3 billion to the national debt.” And that “Cash for Clunkers has not done the one thing Congress intended it to do: create jobs.”

“The average rebate was $4,000. But the overwhelming majority of sales would have taken place anyway at some time in the last half of 2009, according to Edmunds.com. That means the government ended up spending about $24,000 each for those 125,000 additional vehicle sales.” CNN Money October 29th, 2009

The New Deal:

“As the Obama administration begins to implement its economic plan, Americans would do well to reexamine the history of the original New Deal and its effects. Though most historians rank FDR as a great president, some, including Burton Folsom Jr., boldly dare to ask if “the New Deal, rather than helping to cure the Great Depression, actually help[ed to] prolong it” (p. 7). “New Deal or Raw Deal? How FDR’s Economic Legacy Has Damaged America by Burton Folsom Jr.” as reviewed by Eric Daniels.

“The goal of the New Deal was to get Americans back to work. But the New Deal didn’t restore employment. In fact, there was even less work on average during the New Deal than before FDR took office. Total hours worked per adult, including government employees, were 18% below their 1929 level between 1930-32, but were 23% lower on average during the New Deal (1933-39). Private hours worked were even lower after FDR took office, averaging 27% below their 1929 level, compared to 18% lower between in 1930-32.” The Wall Street Journal February 2, 2009

The things the government does often times does nothing at all, or worsens the problem.

We can’t rely on the government for stimulus’ or anything else. They’ll just mess it up again. And use your tax dollars to constantly to ruin this amazing country of ours.

Peggy Noonan said that our current administration thinks that “America is so strong it can take endless abuse.” She also says that “They talk about their “concerns”—they’re big on that word. But they’re not really concerned. They think America is the goose that lays the golden egg.”

The root problem is the government. We are governed by politicians that have forgotten that this nation is for the people and by the people. We are one nation under God. When we say the Pledge of Allegiance we don’t say “one nation under the government” it’s “one nation under God”

We need to remind them who really runs this nation.

 

-Ben