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    This site is about libertarian ideas, politics, economics, government, freedom, property rights, entrepreneurship, innovation, objectivty and other such stuff important to humans. I uphold libertarian principles and believe wholeheartedly in minimal government, or no government if it would work -- this blog explains why.

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    « Some thoughts on autodidactism, degrees and public education | Main | Win or lose -- let's hear it for Hoffman! »
    Tuesday
    03Nov2009

    Social engineering is working! (Warning: Snark Crossing)

    Good news has come from the adminsitration. Obama, Biden and Geithner have proclaimed that their stimulus packages and bailouts have pulled us from the brink and stabilized the financial industry. They are expecting employment numbers to rise soon, since there is growth in the economy. Soon, our healthcare problem will be solved and Medicare will be reformed to save money, too, adding to the health of an already recovering economy -- plus, with government competition, insurance policies will be affordable.

    The second half of the stimulus should be working its way through the economy soon, so that companies will start hiring again. It might take another stimulus to get us to full employment, and by then the financial institutions should be in good shape. The beauty of the stimulus created by this group of very smart people in the present administration is that it will be able to ensure full employment once we get to that point. If unemployment begins to rise again, we know now that government can simply add another stimulus.

    These maintenance stimulus efforts will likely be smaller than the ones which saved us from total collapse. Now that the solution to economic stability has been discovered, we shouldn't have to worry about unemployment ever again. And now that regulations are being imposed to prevent risky financial situations again, the fear of financial collapse has been ameliorated once and for all -- banks will not be allowed to get into the mess they got into under Bush.

    I'm not sure why other administrations couldn't figure this out -- it's really simple, and that's the genius of it all. Most likely, the Bush administration couldn't find the answer because they didn't really believe social engineering would work. And the free market was so sidetracked by individual companies blindly searching for immediate profit, no one could see the bigger picture.

    I'm no social engineer, and I'm sure the adminstration has already thought of this, but now that the economy has been turned around, companies should get over their fear of hiring, especially since the engineers have worked out the formula for a stable economy with full employment. Obama may have been hinting at this today when he said public and private sources need to find a way to get people back to work. Perhaps the country is not quite ready for advanced social engineering, but government might have to lead them to the light. Since there is over 3% GDP growth, and companies could hire if they were confident, Obama might have to enforce an employment minimum for companies who are now reporting profits.

    By working out the math it can be determined what employment level is proper according to revenues and profit margins. Obama need not wait until companies are confident, because they simply might not undertand how social engineering has solved their problem, and it could take them a year or so to catch on. Plus, why should government have to pay unemployment benefits when many companies are now profitable and should be hiring? Just because they have become more efficient and are working the employees they have more efficiently, it's still not fair to the those who don't have a job. By forcing companies to hire according to the new formula, we can reach full employment  much quicker. And once we have full employment and the economy is growing at a record pace, companies can then use their innovations in productivity to expand and maximize profits -- it's a win-win situation.

    Once companies understand that government has solved the boom and bust problem, they will thank the administration later for helping them see the light and do the right thing. Bill Maher was right -- people are stupid and sometimes the government has to drag them along.

    We can't let fear-mongerers and a handful of rightwing radicals stop progress. Obama-haters refuse to admit the stimulus is working, and will continue to work -- their schemes to profit off a bad economy by scaring innocent people is no reason to allow unemployment to rise, not when we can create full employment with a few simple fixes. Surely those in the administration who are educated and have spent years studying these problems have more credibility than drop-out radio talk-show hosts. The fact that the adminsitration believes in government intervention and has developed a stimulus plan which turned around the economy and is leading to full employment is significant and game-changing -- it puts us at a higher level of economic development whereby everyone who wants to work will find a job. It comes down to stimulating the economy as an adjustment to avoid downturns. Brilliant.

    Before, when recessions hit, there was not the right kind of stimulus, but now the administration has devised a stimulus that works. It makes me feel safe knowing my children will never face a serious downturn in the economy and their healthcare will be safe and inexpensive. Mmm..mmm..mmm.

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