Sunday, March 22, 2009

The Economy and where from here

Sitting back and looking at the business and political landscape, I have a few thoughts on where our economy might go from here.

Long-term economic growth (Part I)

The US will no longer be the home of significant economic growth. With the coming regulatory burden facing businesses, increasing taxes on income, utilities, etc. all of these mean upward pressure on prices, i.e. inflation. Look at all of the highly inflationary societies throughout history none of which showed any real growth (i.e. uninflated) and all of which the political class has maintained power only by spouting populist rhetoric or force. None have ever come out of it where the mean wealth of the citizens is higher.

As financial pressures mount, the true colors of people and governments show themselves. Witness what is happeing in the U.S. In Russia, you see Putin putting more pressure on its citizens as they continue languishing. Chavez is doing the same in Venezuela.

The politicians will offer up price fixing. But, for those of you educated in public schools or liberal private schools may not know is that we have tried that in the U.S. before. Nixon fixed prices and it turned into a disaster. I know, I know. Democrats have more feelings and have more compassion, so the price fixes they do will work. Oh really? What has happened t New York city rents once they instituted rent controls?


Why is it that liberals are never measured by the results of their policies only their good intentions? Liberal policy: Social Security - bankrupt; Medicare - bankrupt; public education - failing to educate kids for todays world; Welfare - bankrupts the moral values of the family and leads people to believe that their only way to success is through government; HMOs ( Teddy Kennedy's creation in the 80's to solve healthcare problems) - disaster.

Again, look at national healthcare in Canada and the UK. They are praised by liberals and the media as the end all be all of healthcare.

But, if you talk to the people not the government, you get a different view. With that view you see people having to leave their country for treatments for cancer, MRIs, etc., because they are too old and the cost benefit analysis doesn't work. As I have posted before, no better way to solve the social security and medicare problems than killing off all the old folks and the infirmed by creating waiting lines for special medical services.

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