Thursday, October 20, 2011
Occupy Wall Street: Economics and the First Amendment
The Occupy Wall Street folks are tremendously naive. They believe Wall Street is responsible for the collapse. Partly, but the U.S. government is more culpable. It started with federal legislation encouraging banks to make home loans to very high risk borrowers. It was exacerbated by a lack of investor confidence in the government and economy because of a federal debt that was out of control and an ObamaCare plan which would cost billions and jobs. Yes, there was criminality and corruption on Wall Street and it needs to be dealt with. However, bailing out obviously mismanaged firms sent the wrong message. They think some kind of socialism is the cure. (See Economist Walter Williams recent column) They haven't been doing much reading about the crisis in Greece and the EEU. They don't get it that there is no such thing as a free lunch or pie in the sky. However, I respect their First Amendment right to protest peacefully.
Subscribe to:
Post Comments (Atom)
Since the editor of widely read local self-publication won't print my response to a social progressive's misleading commentary, I've copied my reply here.
ReplyDelete"[Local socialist wannabe] said 'The Balanced Budget Amendment is such a non-starter.... businesses and states do have to balance their budgets, but it is not the same with the Federal government. It sets the value of money and has responsibility for operation of the economy, overspending when necessary to restore balance....'."
"Who put federal government in-charge of the economy? When did that happen? Last I heard, we were a free market society. The only influence government has over the economy is by stepping out of the way and allowing it to function, or forcing instability by interfering with it. Setting the value of money? The so called 'independent' fed drives that segment. Overspending to restore balance? 'What's in your [bank account]?' Comments such as yours demonstrate a poor understanding of economics, our system of government, and relationship between the two. ... the federal government depends heavily on America's private industries to support its common defense mandate. Pull that plug and good bye USA. If I were you, I'd remove the ear plugs and listen to Representative Canseco's actual words. He's absolutely factual and correct in what he's saying."
"The easy money you claim federal government has to throw around is taken from the wallets of working and entrepreneurial Americans, not to mention a growing dependence on foreign loans. Social progressives are bent on destroying prosperity, jobs and ultimately our country with their lavish redistribution fantasies. Talk about selfish."
Needless to say, this self-published editor once made a feeble attempt to give voice to reason and folks he didn't agree with. I suppose it was simply too much for him to bear. The editor, who ran our local newspaper at one time, is about as far-left as anyone can be.
We may be glossing an important point here . . . Wall Street makes money by churning. As long as brokers make more money by increasing the velocity and volume of trades, bubbles will be bigger and implosions more catastrophic.
ReplyDeleteThe housing bubble, like most economic catastrophes, are caused by intrusive and over-controlling big government. It's federal demagogues who undermine prosperity by pushing the creation of false markets.
ReplyDelete44 & Ridgway: Thanks!
ReplyDeleteRidge: Churning is a real problem as is corruption in general on Wall Street and much of corporate America. IMHO, we need to get serious about white collar crime in this country. There are massive rip-offs in many government programs.
Medicare and Medicaid are frequent victims.
44: Thanks for your response. For someone to set up a website and solicit comments and then pick and choose among the comments to publish on ideological grounds is unfair and inconsistent with First Amendment values. There are lots of folks out there who are not really interested in debate and balanced treatment of issues. They are propagandists! See the part of this site on propaganda. I have never deleted anyone's post here. I welcome, and wish there were more dissents submitted.