STIMULATING OUR WAY TO ROCK BOTTOM (Print Version)
by Rep. Ron Paul, MD*
Le Québécois Libre, January 15, 2009, No 263.
Link:
http://www.quebecoislibre.org/09/090115-13.htm
With attention turning to the next big economic stimulus package,
questions are still swirling about our economic troubles. How did we get
here? How do we get out? As usual, Washington has all the wrong answers.
According to many politicians, we got here by not spending enough, not
consuming enough, and not regulating enough. Now government, like some
mythical white knight, is going to ride in to save the day by blanketing
the economy with dollars, hiring an army of new bureaucrats, creating
make-work jobs, and sending everyone some form of a bailout check.
The debate seems to focus on whether this will cost enough to save the
economy, or if this is just a “down payment” with much more government
spending to come. Talk like that would be comical, if the results
weren’t going to be so tragic.
Worsening Economic Woes Ahead |
The results will be worsening economic woes until we
learn our lesson. But instead Congress is behaving like drug addicts who
must hit rock bottom before they are ready to face reality. They are
playing foolish games with the economy now because they are thinking
only of political expedience. This talk of job creation is a perfect
example.
Contrary to the belief of many, the goal of the economy is not job
creation. Jobs can be a sign of a healthy economy, as a high energy
level can be a sign of a healthy body. But just as unhealthy substances
can artificially give the addict that burst of energy that has nothing
to do with health, artificially created jobs just exacerbate our
problems.
The goal of a healthy economy is productivity. Jobs are a positive
outcome of that. A “job” could be to dig a hole one day, and fill it
back up the next, or perhaps the equivalent at a desk. This does no one
any good.
But the value in that paycheck ultimately has to come from taxing
someone productive. Some think this round-robin type of economic model
is supposed to get us somewhere.
Politicians and bureaucrats have already done their fair share to ensure
that jobs in the private sector are prohibitively complicated and
expensive to create. They are now shocked that the economy is shedding
jobs, and want to simply create hundreds of thousands of jobs to make up
for the job losses, through another so-called economic stimulus package.
The private sector must be permitted to do that, but instead they are
massively burdened with taxes and webs of red tape and regulation.
Washington’s bandaids will only prolong this agony.
Long-Term Prosperity / Short-Sighted
Gains |
The Austrian school of economics teaches that only a
free market economy, unencumbered by onerous government controls,
creates long-term prosperity. Politicians, however, tend to be
notoriously short-sighted.
I am left with these questions – who is going to be left standing to tax
in the private sector to pay for all these public sector make-work jobs?
Is Washington really to be considered some sort of savior for creating
unproductive jobs in place of the productive jobs they eliminated?
We are at an economic dead-end and those in power are in denial.
The truth is our economic problems are due to loose monetary policy,
central economic planning, and the parasitic expenses of government.
Unless we assess these problems honestly, we unfortunately have a long
way to go until, like the junkie, we hit rock bottom.
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* Ron Paul
is a member of
the U.S. Congress (R) representing the 14th District of Texas.
This Texas Straight Talk was first published on
January 12.
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