Any time there is an economic crisis, the president and Congress want to be seen as doing something. In their defense, too many Americans, knowing little or nothing about economics, demand that elected officials do something. Liberal office holders and government bureaucrats, of course, are only too happy to oblige because their philosophy is that government intervention is the answer to any and all problems. Herein is found the great paradox facing America.
When suffering economically, Americans want the government to do something to make things better. What we fail to understand is what Ronald Reagan explained when running for president: government is not the solution, it is the problem. When the economy takes a nose dive, nine times out of ten the government is the culprit. For example, the housing and mortgage crash that precipitated the Great Recession of the past five years resulted from the federal government strong-arming banks into issuing mortgages to people who could not afford them. By recasting home ownership as a right rather than a privilege, liberal politicians guaranteed that mortgage foreclosures would skyrocket.
If liberals had not turned America’s public schools into taxpayer-supported centers of leftwing indoctrination where young people focus on self-esteem and multiculturalism instead of real learning, Americans would know their history better. If they knew their history better, Americans would know that government stimulus programs have been tried numerous times, but with a uniform record of failure. In fact, the evidence points to the inescapable conclusion that government stimulus programs just prolong economic recessions. Of course, this fact is precisely why liberals have worked so hard to re-write what little history is still taught in public schools.
Consider the words of economist Walter Williams who recently wrote: “Between 1787 and 1930, our nation suffered both mild and severe economic downturns. There was no intervention (from government) to stimulate the economy, but the economy always recovered. During the 1930s there were massive interventions starting with President Hoover and later with President Franklin D. Roosevelt. Their actions turned what could have been a sharp three-or-four year economic downturn into a 10-year affair.”
Williams goes on to make the point that that Americans have been purposefully misguided in public schools and universities so that they are woefully ignorant of the facts concerning government intervention during economic downturns. He wrote: “…miseducation extends to most academics—including economists—at our universities, who are arrogant enough to believe that it is possible for a few people in Washington to have the information and knowledge necessary to manage the economic lives of 313 million people.”
Have you ever known a person who no matter what the problem happens to be just makes it worse by his involvement? The government is like that person you are thinking of. Consequently, next time you hear a fellow American say words to the effect that, “The government needs to do something about the economy,” enlighten them. Explain that what the government needs to do is get out of the way and do nothing. The government is not the solution, it is the problem. Are you listening Mr. President?