With the new President and his admittedly socialist tendencies I find that we will probably hear more about how "Laissez Faire Capitalism" is responsible for the financial collapse of the day. Now lets be fair, this isn't just a Democratic thing and Obama and Co. cannot claim being the first to use the government to impose itself on the country by way of regulations. The Republican's, or more correctly the neo-cons, have been pushing this poison for some time. Bush did very little to try and deregulate various industries.
Don't believe me? I recommend you look at George Reisman's blog on Economics. More specifically check out this Oct. 21, 2008 entry The Myth that Laissez Faire is Responsible for Our Financial Crisis. I warn you it is lengthy and will take some people some time to digest. It points out where Government is involved with various agencies and cabinet positions. And it tackles where the marget failed. It's a long read but well worth it so that you know the truth and not just what some pretty talking head said on FOX or CNN.
The long and short of our current financial problem is the Federal Reserve. Anytime a government starts printing money to provide capital it does several things.
double what you pay me each day. At first it sounds great until the
person has worked for 28 days and you have to pay them$1,342,177.28. Interest is similar when it comes to credit. Most of use face this now. Sure credit is great if you pay it off in the first month, but what if you can not? What if you find your self over extending and buying something you should never have done in the first place?
Well you either get another job or find some way of making larger payments or you find yourself like many. You are now a wage slave. You have to much debt to say no. But wait, the government says they will help out. Help with what though? Notice the government's answer to the financial crisis is to make sure that the banks can keep lending. All this does is extend the time you can keep racking up that bad debt.
Don't believe the talking heads when they blame the economy on capitalism. America stopped having capitalism in 1929 because the government stopped the market from keeping it honest.
Don't believe me? I recommend you look at George Reisman's blog on Economics. More specifically check out this Oct. 21, 2008 entry The Myth that Laissez Faire is Responsible for Our Financial Crisis. I warn you it is lengthy and will take some people some time to digest. It points out where Government is involved with various agencies and cabinet positions. And it tackles where the marget failed. It's a long read but well worth it so that you know the truth and not just what some pretty talking head said on FOX or CNN.
The long and short of our current financial problem is the Federal Reserve. Anytime a government starts printing money to provide capital it does several things.
- Devalues the currency.
- It creates false security and essentially makes a money bubble.
- Because it forestalls the market from correcting the large debt the debt gets bigger till it hits the unplayable point.
double what you pay me each day. At first it sounds great until the
person has worked for 28 days and you have to pay them$1,342,177.28. Interest is similar when it comes to credit. Most of use face this now. Sure credit is great if you pay it off in the first month, but what if you can not? What if you find your self over extending and buying something you should never have done in the first place?
Well you either get another job or find some way of making larger payments or you find yourself like many. You are now a wage slave. You have to much debt to say no. But wait, the government says they will help out. Help with what though? Notice the government's answer to the financial crisis is to make sure that the banks can keep lending. All this does is extend the time you can keep racking up that bad debt.
Don't believe the talking heads when they blame the economy on capitalism. America stopped having capitalism in 1929 because the government stopped the market from keeping it honest.
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