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Source link: http://archive.mises.org/10763/all-is-well-because-obama-is-in-charge/

All is well because Obama is in charge

October 5, 2009 by

A new study from Pew confirms what I’ve suspected. The press has not been reporting on economics from the point of view of the average person but rather focusing mainly on big institutions and how our glorious masters in Washington are fixing all things.

Pew found that almost 40 percent of economic news reports dealt with the trials of the banking and auto industries, and the federal stimulus bill passed in February.

Unemployment and the housing crisis accounted for 12 percent. And, the study said, “stories that tried to explicitly examine the broader impact of the economic downturn on the lives of ordinary Americans filled 5 percent of the economic coverage.”

{ 3 comments }

Jamie October 5, 2009 at 6:59 am

Kinda scary how we complain that the government is run by corporations, and we live in basically a burgeoning form of neo-feudalism, but then people are so willing to turn all major decisions over to the hands of said corruption (whether that be ‘career politicians,’ or the corporations, themselves).

Arend October 5, 2009 at 7:30 am

Yeah, it’s the result of human action but not of human design (at least not of any remote majority). But that’s the way of democratic socialism/fascism.

Ronald Pray October 29, 2009 at 7:05 pm

There are certain things a government must do which this administration is not doing to insure a safe business climate:
1. we should have a stable dollar which is as John Kennedy once said should be “as good as Gold” This administration has made the dollar very elastic as a matter of policy which drives away investors and when there is excessive debt is continually monetized it puts fear into the foreign purchasers of Treasuries and also drives the World Bank in considering replacing the dollar as the reserve currency.
2. The Rule of Law should be ironclad and not arbitrarily flouted by any administration. The property rights of the Indiana retired teachers and retired police officers having their retirement accounts held in Chrysler Bonds should have never had the assets of Chrysler given to the UAW by the Obama administration which vilates 150 years of securities laws. This is the road taken by Argentina which is why it is not a wealthy nation today.
3. This administration has misled us on every aspect of reform of the health care industry and cap and trade. On health care, the Congressional Budget Office has on many occasions belied the financial information the president has given us. Cap and Trade is based on the Spanish model whereby carbon emissions are strictly regulated and alternate energy like wind power and solar power are promoted. The Spanish economy as result has an 18.1 percent unemployment rate, double that of any EU nation, the cost per green job is any where from $780 thousand to $1.4 million, and take 2.2 jobs away from other sectors of the economy. Please see Dr. Calzada’s study at: http:// tinyurl.com/d79ye.
3. Property rights should be protected by government in order to insure that entrepreneurs who wish to use their property, buildings or whatever they own as collateral in risk taking activities. Also, property rights that are preserved under the rule of law attract entrepreneurs from all over the world to start businesses in this country. This administration has had a certain amount of disregard for property rights as mentioned in the Retirement accounts of Indiana retirees as well as the rights of companies to set the reward for their labor in regards to bonuses given to employees of financial institutions along with “risk management” by this administration. These initiatives of this administration drive out investors to places like India .
4. In order to start any heavy industry project here, especially in California , the requirement of licensing and environmental impact statements, EISs, and community input virtually makes doing business impossible. The business of government should be to loosen up the regulatory constraints and make starting up business relatively easy.
We need not ask why businesses are migrating offshore when the government makes the business climate unattractive.
5. Tariffs should never be excessively high or it would kill free trade across borders and drive up the cost of doing business. A case in point is the Smoot Hawley Tariff of 1929-1930 which ignited a tariff war which set off the Great Depression of the 1930s.
6. Taxes ought not to be excessive which is what followed Smoot Hawley by both Herbert Hoover and Franklin Roosevelt in the 1930s which killed any chance of a recovery. The Cap and Trade Bill is considered to be an opaque tax due to its hidden nature in billing energy companies and corporate manufacturers as well as conveyances of goods like trucking companies. The bill is basically a Value Added Tax on every level of production and distribution which is supposed to be the biggest tax increase in recent history. The costs will be passed down to the consumers.
It seems like the education of the American people in economics is a daunting task which is a little short in time and may come too late. One thing for sure is that the results will definitely draw them to the polls in 2012.
Ronald Pray,
Honolulu, HI

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