To be successful, a country has to have three fundamental economic principles in place, and President Obama has assaulted all three in bringing about America’s economic decline.
These three economic principles are the rule of law equally applied to everyone, a sound currency, and property rights. When the rule of law is corrupted so that it is unequally applied, then its effectiveness begins to wane as citizens become cynical and their faith in the legal system is undermined. Similarly, when government prints money to paper over its deficit spending, inflation appears as a pernicious tax to rob the currency of its value and undermine faith in its ability to be trusted as a store of value. Likewise in regards to property rights, when government begins to abuse the power of eminent domain to seize private property and pass it to political cronies for their personal enrichment, property owners’ faith in the security of their ownership is undermined and the inclination to invest in improvements is greatly reduced.
We’re all familiar with the banana republics of Central and South America in which rampant inflation causes currency to be constantly reprinted to add ever more zeros in a vain attempt to keep up with the inflation rate, where people live in slums because any property improvements result in seizure of the property by someone connected to the ruling party, and where justice depends upon one’s connections to the government and the size of their wealth. Countries with these conditions make success impossible and so many of their citizens flee to more stable countries such as America where success is much more likely to be achieved in the absence of these crippling economic conditions.
America has always been the refuge for those who sought to escape economic oppression at home for a chance of success and a better life. America’s adherence to the fidelity of these three economic principles has allowed it to achieve the highest standard of living in the history of the world. And, it did so in a mere 400 years since the first permanent English settlement was established in Jamestown in 1607. America was the first country where one could rise above their station at birth through hard work and ingenuity. Families were not forced to struggle just to survive, but were able to build a better future for their children and pass along what they had for the next generation to improve upon. Our government remained small and focused upon the tasks it did well such as resolving disputes between the states, negotiating foreign treaties, and defending the country from foreign invasion while protecting American interests abroad.
Two world wars in the Twentieth Century forced the government to grow large enough to manage these monumental tasks, and after the first war, there was reluctance by some to see it shrink back to its former manageable size. This group sought out large domestic programs in which to engage the government in the maintenance of this size and reasoned that this would serve us well when the next emergency arose on the world stage. The threat of nuclear war also hung over us as we emerged from WWII as the sole superpower on the planet. We now had the responsibility of protecting the entire world whether we wanted it or not. After the threat of war subsided with the fall of the Berlin Wall in 1989, there was found ever more things for the government to do until we arrived at the presidency of Barack Obama – a man committed to the radical progressive liberal agenda of big government socialism with increased spending and taxes to provide cradle-to-grave benefits as a lure for the type of government dependency that would solidify entrenchment of power for his party.
As president, Barack Obama has assaulted all three of these fundamental economic principles in his effort to divide Americans against each other in a cynical class warfare ploy to retain electoral power. He has increased the national debt from $9 trillion to $16 trillion, almost doubling it in four short years. He has demagogued the wealthy as not paying their fair share and the possession of wealth as being unfair in the country which has made its accumulation possible for so many. This despite the fact that in our highly progressive income tax system the bottom half of earners pay no income tax while the top 10% of earners pay some 70% of income taxes. I agree that the wealthy are not paying their fair share – they are paying much more than their fair share! His Administration’s policy of easy money to stimulate the economy has resulted in a flooding of new money into the American economy, and the only check on inflation so far has been the economic stagnation his policies have created through their promotion of uncertainty. Americans are afraid to spend because we don’t know what the future holds, and our lack of spending has kept manufacturers from raising prices to absorb the massive influx of new money into the system. This will change when the economy becomes more stable and spending increases, which it will to some extent to replace worn out items. Unless this excess money is skillfully removed from the system as the economy improves, we can expect massive inflation to devalue our currency and the loss of a tremendous amount of wealth.
President Obama has abetted his Attorney General, Eric Holder, in a massive cover-up of the failed Fast & Furious gun walking scandal which allowed assault weapons to flow into the hands of the vicious Mexican Sinaloa drug cartel and resulted in the death of Border Patrol Agent Brian Terry in 2010. We’ve since learned that this operation was undertaken in the hopes of promoting the left’s agenda of gun control by demonstrating the destruction of American weapons finding their way into Mexico. Additionally, Attorney General Holder has refused to prosecute members of the Blank Panthers for voter intimidation tactics outside a polling station in Philadelphia during the 2008 election despite overwhelming evidence, and has refused to prosecute cases of black-on-white assaults by gangs of black thugs randomly attacking white people. Instances of political cronyism such as the bailout of failed alternative energy companies such as Solyndra and Evergreen Solar to protect the investments of connected insiders at the expense of taxpayers further contribute to the impression that connections and wealth are much more important to the justice system in America than equal application of the law.
What American can feel secure about his property rights after witnessing Nancy Pelosi and Harry Reid orchestrate the nationalization of the healthcare industry under President Obama’s approving eye? American doctors and nurses are set to become federal employees under the Affordable Care Act, while the doctor-patient relationship is monitored by government bureaucrats who have no business being involved in the intimate medical details discussed in a doctor’s office. The worst part is that a collection of blank pages was rammed through Congress over the vehement objection of an overwhelming majority of Americans, with the details to be filled in at a later date. And, who can forget the Administration’s heavy-handed treatment of BP in the aftermath of the Gulf Oil Spill in 2010 when they demanded BP provide a $20 billion settlement fund without the benefit of jurisprudence? BP was not allowed their day in court to defend themselves and their actions in this tragedy, but was intimidated into contributing to another Obama slush fund to be used at his convenience to support those of his choosing.
Given President Obama’s assault on these three fundamental economic principles, is it any wonder that wealth in America has gone on strike to await Obama’s removal from office? The wealthy do not have to invest their wealth into productive enterprises that create jobs and provide needed goods and services. They have the luxury of living off of their wealth and awaiting better investment opportunities in America, or of transferring their wealth to take advantage of better investment opportunities abroad. The current economic stagnation in which we are mired is the direct result of this wealth strike. The wealthy are awaiting a time when uncertainty of the future has subsided to the point where reasonable planning can be undertaken and risk can be reasonably assessed. President Obama’s lack of business understanding and slavish devotion to the failed big government economic ideas of John Maynard Keynes prevents him from grasping these fundamental economic points and keeps America trapped in economic stagnation. Assaulting wealth and the wealthy allows Obama to further divide Americans along class warfare lines as he cynically promotes envy and strife through such tactics as the manufactured Occupy Wall Street astroturf movement.
Ronald Reagan’s sunny optimism was refreshing to an America exhausted by the stagflation running rampant under Jimmy Carter’s presidency. Reagan believed in America and its ability to overcome any obstacle because he knew that the capitalism which had made America the greatest country on earth in only 400 years could overcome stagflation if only it was unleashed and allowed to fully work its economic magic. The election of 2012 is similar in many respects to the election of 1980. An economically clueless president has made a bad situation worse leaving Americans reeling in misery, while an optimistic challenger lays out a vision of a rejuvenated America basking in economic prosperity. It was an easy choice for Americans in 1980, and I suspect it will also be an easy choice for Americans in 2012. At least it should be.