With QE2 completed, and with the economy still stumbling along, with jobless rates higher than ever, and no end in sight, isn’t it time that we gave up on government intervention in the economy?
When Henry VII boldly declared that he, not the Pope, has ultimate religious authority, he opened a can of worms that caused immense damage to the peace of the English people. See, so many years ago, in Magna Carta, the nobles had constrained the king by declaring that he had no power in religious affairs, but that the church was free. By violating this simple concept, laid down because of the problems with the mingling of church and state, there was incalculable damage done.
We know that government has very little role in economics. The tax level should be low, the regulations very reasonable and universally enforced. Government’s budget should be small, and borrowing should be kept to a minimum and only in times where it is absolutely necessary to protect our rights.
As government has grown over the years, it has supposed that not only does it have the power to interfere in the economy, but that it must do so, for the benefit of the people. As we are seeing, the effects of a meddling government are devastating. With the government’s thumb on the economic scale, banks cannot return to producing wealth as they had done before. With the government bailouts, and now the outright printing of money we call QE1 and QE2, we are seeing the economy get worse and worse.
If we simply allowed business owners and financiers to simply do what they do best, by allowing failures to fail and successes to succeed, if we stopped the flow of cash and favors from Washington DC to corporations around the world by limiting federal power and budget, then we could actually see real growth.
There is no reason why the United States of America should not see growth rates higher than all the other countries in the world. We should be growing at 10% a year, maybe more, because we are that innovative and that adaptive and hard working. We should see our salaries and wages rise, year after year, because one person can improve in their own efficiency and the buying power of the dollar should increase.
Instead, we are revisiting the malaise of the 70’s, when big government ran big business into the ground.