Posted tagged ‘free market’

Welcome AlphaInventions Visitors

October 31, 2009

To all of you finding your way to this blog via AlphaInventions, welcome and thanks for clicking through! I hope you’ll learn a few things and maybe start looking at things in a new way.

I do this blog in my spare time so sometimes it doesn’t get updated for a few days at a stretch, but come back often and leave comments when something interests you.

For those not familiar with AlphaInventions.com , it is an innovative web site & web app written by Cheru Jackson. It displays a continuous cycle of “screenshots” of recent blog updates published by a wide variety of bloggers, helping bloggers connect to each other and to find new readers. Check it out – you’ll see what I mean.

The best thing about AlphaInventions.com? It’s innovation brought about by an individual with an idea and the skills to carry it out. A brilliant example of what the free market can do when it’s allowed to function without government involvement.

 

It’s All About Unemployment

April 27, 2009

There can be no recovery until the free market is allowed to complete the correction we are now facing. And until the correction is complete, unemployment rates will continue to come in at record high numbers.

I’ve said before that it seemed foolish to start looking for anything like “recovery” until unemployment numbers dropped significantly. Finally, someone else is saying the same thing:

Defaults among prime borrowers are really starting to pick up. Why? Cause even solid borrowers can fall behind if they lose their jobs.

Credit card companies see much deeper charge offs than they’d foreseen just a few months ago. Again, unemployment.

While the talking heads insist that unemployment is a “lagging indicator”, it’s pretty clear that the financial system is highly levered to this numbers, so it’s hard to imagine a real turnaround unless the economy stops bleeding jobs.

Continue reading

State Budget Deficits vs 2008 Election Results

February 1, 2009

A couple of interesting maps when you compare them side by side:

With very few exceptions, it seems the states with lower budget deficits (or none at all) are traditionally “red states”. Maybe the ideas of lower taxes, less regulation and free market economy aren’t so bad after all, hmmm?

Most conservatives will probably agree the Republican Party has gone astray, at least to some degree, over the last couple of decades but when it comes to fiscal responsibility they are still doing much better than the Democrats (at least on a state level).

You can view the larger, interactive versions of these maps at the following links:

Where Does Your State Rank? from CNNMoney (click the “State Budget Deficit” tab above the map).

2008 Election Map from NPR

Bush says sacrificed free-market principles to save economy

December 18, 2008

 US President George W. Bush said in an interview Tuesday he was forced to sacrifice free market principles to save the economy from “collapse.”

“I’ve abandoned free-market principles to save the free-market system,” Bush told CNN television, saying he had made the decision “to make sure the economy doesn’t collapse.”

Continue reading…

What was it they said during the Vietnam War… we had to destroy the village in order to save it. I’m kinda feeling like a Vietnamese villager lately.

The Bailout Surge by Ron Paul

November 26, 2008

“The Bailout Surge”

This week the bailout of the Big Three automakers was under heavy consideration in Congress’s lame duck session.  I have always opposed government bailouts of private organizations.  Back in 1979 Congress had hearings about bailing out Chrysler and I was on record pointing out that these types of policies are foolish and very damaging to the long term economic health of our country.  They still are.

There was also renewed pressure this week to bailout homeowners and send another round of stimulus checks to “Main Street” to balance out all the handouts to big business.  It seems that eventually the entire economy is going to be blanketed over with Federal Reserve notes.  Most in Washington are completely oblivious as to why this model of money creation and spending is so dangerous.

We must remember that governments do not produce anything.  Their only resources come from producers in the economy through such means as inflation and taxation.   The government has an obligation to be good stewards of these resources.  In bailing out failing companies, they are confiscating money from productive members of the economy and giving it to failing ones.  By sustaining companies with obsolete or unsustainable business models, the government prevents their resources from being liquidated and made available to other companies that can put them to better, more productive use.  An essential element of a healthy free market, is that both success and failure must be permitted to happen when they are earned.  But instead with a bailout, the rewards are reversed – the proceeds from successful entities are given to failing ones.  How this is supposed to be good for our economy is beyond me.

With each bailout we hear rhetoric that this is the mother of all bailouts.  This will fix the problem once and for all, and that this is absolutely necessary to avert disaster.  This sense of panic squeezes astonishing amounts of dollars out of reluctant but hopeful legislators, who hate the position they are being put in, but are relieved that it will be the last time.  It is never the last time, and again and again we are faced with the same scenarios and the same fears.  We are already in the bailout business for such a staggering amount that admitting it was wrong in the first place would be too embarrassing.  So the commitment to this course of action is only irrationally escalated, in the hopes that somehow, someway eventually it will work and those in power won’t have to admit they were wrong.

It won’t work.  It can’t work.  We need to cut our losses and get back on course.  There is too much at stake for too many people to continue down this road.  The bailouts thus far to AIG, Bear Stearns, Fannie and Freddie, and TARP funds amount to around $1.5 trillion. Considering our GDP is $14 trillion, and our Federal budget is already $3 trillion, this additional amount will significantly eat into our future lifestyles.  That amounts to an extra $5,000 that every person in the country needs to somehow produce just to keep up.  It is obvious to most Americans that we need to reject corporate cronyism, and allow the natural regulations and incentives of the free market to pick the winners and losers in our economy, not the whims of bureaucrats and politicians.

From Campaign For Liberty