Riffing from Levin’s ‘Liberty and Tyranny’ (pt 2)

Posted: May 23, 2009 in Politics
Tags: , , ,

This article is part of a five-part series. See Part 1 here.

Economic Intervention
Every government program is an intervention in, and thus an interruption of, the free market. The post office, for instance, is a competitor of UPS and FedEx. But because the USPS isn’t required to make a profit, its rates are artificially imposed – and that in turn affects the rates of the private companies, too. Public schools draw funds away from every property owner in order to compete with private schools that have no captive pool of contributors – they can only charge the customers they provide a service to. (The truly criminal part of this situation is that the private school customers are often also paying the taxes that fund public schools!) Minimum wage laws prevent employers from discovering the actual value of their workforce and their ability to hire more workers. CAFE (Corporate Average Fuel Economy) standards for vehicles limit the availability of designs that are offered to the public (and have actually been proven to have cost more lives in the name of ecology). Taxes of every kind influence the fiscal decision-making of every company and individual in this country. There’s virtually no area of trade untouched by the federal, state and local governments.

So when the federal government starts talking about spending a great deal of money on a plethora of new government programs to “stimulate” the free-market economy, a perfectly reasonable and understandable reaction would be one of horror.

Mark Levin writes in the chapter called On the Free Market:

The reason stimulus plans of this sort do not work is a fundamental reality of governance: The government does not add value to the economy. It removes value from the economy by imposing taxes on one citizen and providing cash to another. Or it borrows money that would otherwise be used by investors and redistributes it elsewhere. Or it prints more money and threatens the value of the dollar. Nothing is stimulated. Spending power is not increased.

There is another aspect of government in the marketplace that should not go unmentioned. No one thinks FedEx is an inferior product to the USPS. The mere fact that private schools can charge for enrollment indicates that they clearly have a better product than the “free” public, government schools. There is nothing that government can do in the marketplace that private business cannot do better, cheaper and more efficiently. Levin writes:

Moreover, politicians and bureaucrats are substituting their uninformed, largely political decisions for those of the marketplace. Their past miscalculations demonstrate that they do not and cannot possess the information, knowledge, means, and discipline to manage the economy.

Or anything else, for that matter. Without going into too much detail, my biggest gripe when it comes to Washington’s virtual takeover of AIG, Chrysler, and now the credit card industry, is this: why does D.C., and especially our new President (who has no experience in business of any kind at all), think that they can make better corporate decisions than the people who worked ridiculous hours for years and years, clawing their way to the top of their corporate chart to become masters of their industry?

Our current federal government is taking their lead from the president – and he hates the free market. There is a specific, leftist image of what the world ought to look like, and they want to compel or coerce the country into that mould. The free market often disagrees with this image, and the Statist is alarmed that it’s wise, parental advice is being dismissed. Obama will impose the image through force onto the world rather than revise the image to fit reality. For the world’s own good, of course, whether anyone wants it or not.

Part 1: World Opinion and American Exceptionalism
Part 3: The Linguistic Psy-War Tactics of Liberals

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