Government is responsible for high unemployment and bad economy
Sunday, August 22, 2010 at 04:50PM We need to keep beating this drum, because if we don't, all we'll hear and read about are immigrants, mosques and same sex marriage. The main cause of high unemployment and the economic downturn is taxation, government spending and government protection of special interests at the expense of the middle class and the poor. Government has siphoned off limited resources from the private market, taxed away investment and saving and blocked small and medium size businesses from developing and giving the poor a way out of poverty. This has been going on for quite awhile, and it's being accelerated presently.
Government can help turn around the economy by abolishing or lowering taxes. The middle class and lower middle class pays taxes to support subsidizes going to the rich, such as farm subsidies and bank bail-outs and auto company bailouts and support of Fannie and Freddie. The stimulus was a misdirection of resources which could have helped a lot of people now out of work. The private market will invest capital in more productive ways than government stimulus. But lowering taxes is not enough.
We need to end all corporate welfare. We need to end the wars and stop the insane spending on the military/industrial complex. We need to make it easier for the poor and middle class to start their own small businesses. Once government cuts back on wasteful government programs, the talent now wasted in government -- scientists and engineers and such -- will be available for productive work in the private market.
We need to stop wasting resources on the UN and foreign aid which winds up in the hands of dictators. We need to go after corruption and waste in government with a vengeance. By doing all these things and by abolishing or drastically reducing taxes, we can expand the economy and produce new wealth. Producing new wealth is the only way out of our present economic crisis. Poverty will be reduced by creating more opportunities in the private market.
These are the concerns we should be talking about -- not whether a mosque should be built in NY city. Murray Rothbard and Frank Chodorov were recommending these changes decades ago, but now moreso than before, we've got to allow the private market to work. Something as simple as changing licensing laws so that peddlers can make a living and small businesses can be created without red tape will make a big difference, but it will require a comprhensive effort to get government out of the way.
The American public, and especially the poor, should be fighting for these changes. The poor, relatively speaking, have more to gain from a free market than the rich -- these changes will make a bigger change in the lives of the poor than the rich. A good job with good pay, or the ability to start a successful small business, can be life changing for someone in poverty, yet the status quo blocks this progress, and, instead, offers crumbs through the welfare state. It's time for a change, and this is what the professional politicians fear the most - prosperity and independence.


