It’s hard not to contrast President Barack Obama’s charming personality with his atrocious policies and muddled thinking about economics. He’s right now pitching some kind of government lending pool, and is championing a bank bailout, but he promises not to help speculators or those greedy people who bought houses they can’t afford. Actually, speculators will do far more to get the nation out of its housing slump than all the government regulators and tax dollars combined. Speculators are the ones who put their own money on the line to buy up these empty and foreclosed houses, while the government tries to artificially reinflate the housing bubble with cheap credit and direct subsidies.
Don’t worry, the president argues, he and his administration will carefully monitor all the spending in the massive stimulus plan. CEOs won’t be able to pad their paychecks, he promises. But I assume government officials can continue to pad their lifestyles as they typically do. Those corporate-welfare whores who take government money can hardly complain when their new bosses in the government tell them how they can spend the money. But it’s fairly dangerous to let the government start meddling in private business decisions.
I am reminded of one of those email mass mailings I received in which a professor explains to his student the way the stimulus package works. He asks the student to take water from the shallow end and dump it into the deep end. Isn’t that what the government is doing by taking money from one pocket and putting it into another pocket?
The president just offered an absurd straw man, as he criticized those who say that the government has “no role” in assuring prosperity. Libertarians don’t say that. We say the government has the role to maintain the rule of law and provide for the national defense and some other carefully detailed functions. Those functions are important and are crucial to allowing a free people to become prosperous. But government is not the creator of wealth. Here we see that President Obama has an unhealthy faith in government. In fairness, Republicans talk about limiting government but have proved themselves to also be believers in government. Still, Obama has a quaint faith in public works and government programs. This comes through clearly in his congressional address.
I can’t stand the way he throws around the term “we,” when he actually means “the government.” Yes, we will invest in this and we will invest in that. We will make more efficient cars, when in reality private companies will make these cars and government will do little more than impede them. He says that we cannot walk away from the car industry, but why not? I don’t care if my cars come from Detroit, Seoul or Veracruz. Someone, I’m sure, will make cars that I want to buy. President Obama assured us that this won’t be cheap, and on that point he no doubt is right. He is pushing hard for more health-care reform, which will be expensive in terms of money and lives.
Nothing here will be cheap, and nothing here will advance the cause of limited government and freedom. On those points, we can be certain.