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Source link: http://archive.mises.org/7783/the-frightful-face-of-stimulus/

The Frightful Face of Stimulus

February 15, 2008 by

Among businesspeople, bankers, and investors, there is a growing fear that the economy is headed towards recession or already in one. But that alone is not the source of worry. After all, an economy if left alone to function in freedom can recover. The real problem has to do with the political response. There is every indication that no matter who comes to be in charge in November, we face a future of massive spending, inflating, and regulating.

And here is the real danger. One only needs to look at such preposterous measures as the “stimulus package” that Congress passed to much fanfare. Dumping money into consumers’ hands, drawn from wherever they can get it, is the only means these guys can dream up to shore up prosperity. That only proves that they don’t know what brings about prosperity in the first place, which is not Congress but free enterprise. FULL ARTICLE

{ 7 comments }

lester February 15, 2008 at 9:36 am

“But bridging the gap between private opinion and official policy will require nothing short of a miracle.”

that’s why I am supporting Obama. I probably would have gone with Huckabee, but at least there is a chance for some sort of common sense to work it’s way in to government policy with someone less beltway damaged than hillary or mcain. naive I know.

Bruce Koerber February 15, 2008 at 11:49 am

What they see in the mirror is not frightening to them. They see themselves and it makes them feel glorious.

These are the ego-driven interventionists that look into the mirror and when they look in the mirror they feel important and powerful. I don’t think that looking in the mirror will help.

One of the things that will help is the outcry by the ‘educated’ that they, the ego-driven interventionists, do not have the moral authority to extend their corrupting hand toward the economy. Their touch is like that of a leper. Once they are shunned the economy will return to health.

Henry Miller February 16, 2008 at 9:34 am

Lester, I’m supporting a third party (most likely either constitution or libertarian – we will have to see who each runs before I make a decision). Voting for either of the major parties means I lose at this point, so I’m going on the theory that if a third party gets enough votes the truth might get some press next time around.

Not like I know, but what else can I do. I’m going to lose no matter what.

fundamentalist February 16, 2008 at 1:27 pm

Politicians do little more than give the people what they want, and the majority of Americans believe that the government can generate prosperity by printing money or spending more.

A professor at the University of Central Oklahoma has run a model that forecasts the outcomes of presidential elections for many decades and it’s pretty accurate. He has just one predictor variable–the rise in GDP during the second quarter of the election year. If GDP rises that quarter by 2.5%, the incumbent party will win; if it rises less, the opposition will win. The economy is more important to voters than anything and they think the president controls the tap. So if politicians want to stay in office, they had better open the tap as much as possible. This false belief comes from the false idea that money is wealth instead of a measure of wealth. Bastiat tried to rescue his fellow Frenchmen from this fallacy and failed. I doubt we’ll do any better.

IMHO February 17, 2008 at 4:17 am

The money being spent on the war is the elephant in the living room that this administration refuses to address. I’ve watched some of Bush’s press conferences, and I’ve never seen it discussed. It’s as though the admnistration wants us to participate in the fantasy that the war is somehow separate and apart from the rest of the economy. They want us to stay focused on the “free” money that the government will be handing out, while they continue to spend billions upon billions on the war.

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