Never one to mince words, Llewellyn H. Rockwell Jr., founder and president of the Ludwig von Mises Institute in Auburn, Alabama, editor of LewRockwell.com, and author of numerous books on economics and politics, lays it on the line with a scathing rebuke of Obama’s plans to spend one trillion dollars in Obama’s Wealth Destruction, a commentary posted on lewrockwell.com.
With his rhetoric and policies, he (Obama) has decided to demonize private enterprise, just as FDR did, as a way to present government as the great savior.
Now, think about this. If there is a way out of the recession, it will have to be provided by private enterprise. It will come by new businesses, business expansions, entrepreneurship, new technology, and this will be the source of lasting jobs and prosperity.
You cannot make a country rich by looting taxpayers and paying people to pound nails into siding at public schools! These activities amount to capital consumption. They are not sources of investment. You can say that they are stupid tasks or wonderful tasks, but it is not a matter of ideology as to whether such public projects will make us all wealthier. They will not. They drain the sources of wealth from society. They represent a cost, not a blessing.
Continuing, Rockwell condemns Bush’s stimulus plan.
That was also true of Bush’s dumb stimulus program. He was only bailing out his friends at our expense. The effect was to give a little longer life to institutions that were failing anyway. It’s pathetic that the Republicans ever went along with it. You will notice that the scheme didn’t actually work.
Well, Obama is doing the same thing, though rewarding a different set of friends. This is not wealth production. This is wealth consumption. Do enough of this nonsense and you can destroy the livelihoods of an entire generation.
Interestingly, Rockwell praises Reagan for his handling of the 1981-1982 recession.
He (Reagan) was fortunate to have advisers who insisted that he let the liquidation happen rather than attempt to fix the recession of 1981–82 with huge new government spending programs.
The biggest threat facing the American economy right now is rarely even discussed. It is the massive buildup of paper bank reserves in the last quarter of 2008. This was Bush’s doing. He ordered the Fed to print like mad. Fortunately for us, the banks are still holding on to these reserves. When they start lending again, the result could be hyperinflation of Confederate dollar proportions.
Read Obama’s Wealth Destruction by following this link.