Are both of these guys’ comedians or just the one? The problem is that the economic joke has been on us the taxpaying public! The barrage of invented rhetoric to outright lying by the Obama campaign simply is amazing. It ignores history as well as the facts and creates as its fundamental foundation of fairness (the new 3F club?), the failed voodoo economics of John Maynard Keynes, who argued that “private economy” worked against a return to prosperity. One can hear Keynes today as spouted regularly from the mouth of the NY Times writer,Robert Reich, who is still braying that Obama did not spend enough to bolster the economy.
Well, after close to four years now and as well as a dozen under FDR, this point of view has as little stature now as in the Great Depression or the height of Mr. Reich. All are short on results. Keynes, as one could postulate, is the father of Obamanomics, and who argued for government intervention to prop up economies. His theory became the driver behind the failed Roosevelt New Deal era programs. FDR’s policies had taken the ’29 depression, smaller than the one of 1920, which lasted for a year and a half and molded into the “Great Depression”. The FDR depression lasted a dozen or so years due to his micro management of it wherein he set “fair” pricing and “fair” wages. Just as a footnote, Henry Morgenthau, Treasury Secretary to FDR, admitted to members of Congress, that FDR clearly failed with his economic policies which greatly extended the Depression. The counter to this Keynesian claptrap was Friedrich August von Hayek who argued in “The Fatal Conceit”, that “the curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.” I wonder who will step up to the plate in the Obama administration and state Obamanomics was clap trap and apologize to us for our loses?
The latest attacks on Romney for his work at Bain Capital, despite Romney no longer being active there, is pure Keynesian claptrap. Just to show how political and fallacious Obama’s argument is; the current head of Bain is an Obama bundler and campaign contributor. It is further nonsense for Obama to criticize Romney as not caring about the few workers who were laid off, and yes few by comparison to jobs added and discounting the many that were hired. An unfortunate byproduct of capitalism is the evolution of companies; some grow, as well as some fail and those that fail lay off workers as well. I cannot imagine Romney not being concerned about those who were laid off and I will guarantee you that the layoffs were part of the discussion about which companies had to be shut down and which would continue. In the case of one company cited by Obama, the Bain investment gave that steel company and its workers eight more years of life, following its initial decision to file for bankruptcy during the meltdown of the steel industry. Obama probably has fired more workers through the arbitrary and capricious closing of GM dealerships, the bankruptcy of Solyndra and several other green nonsensical investments of our tax dollars than Bain in its entire history. Obama has not created jobs, but Bain has created thousands with an 80% track record of success, as compared to the almost universal failure of Obamanomics in job creation.
Venture capitalism is the smart risk of money invested in business in order to prop them up for success, where they may have been headed down the path of failure. Yes, and they also buy these companies at distressed valuations. It is not the intention, nor the purpose of venture capitalism to invest in a company to neither create nor save jobs. It is their sole purpose to create wealth for the sake of themselves and for their shareholders, many of which are investors from union, scholastic, government and others in their pension funds. This is the business they are in. What is true, as Hayek described decades ago, success allows for others to participate in that success not by intention of those who would succeed, but as a “natural byproduct of the free market”. Regan called it “trickle-down economics”. It is not a term that I ever thought sounded nice, but it is reality.
History has proven that whenever a government messes with the free market and tries to control the economy with its puppet string mentality, either the economy fails or you have a dictatorship controlling everything where everyone has their “fair share” of minimal success. In other words all fail together, as in Greece and the only ones who seem to thrive are the politicians.
In today’s world all one has to do is to look at Greece. I will argue that their next move is to exit the Euro, install the Drachma once again; the Drachma will become as worthless as WW2 Deutschmarks and they will descend into darkness and chaos. You have seen it in a small way here. Imagine the anarchists you currently are seeing on TV, screaming to tear down capitalism, forgive my mortgage, forgive my contractual college low interest loans, give me, give me, and give me. This is just a small sampling of where Obamanomics and entitlement mentality is leading us to. One can argue all day long that Keynes was right and that the government needs to become Big Brother and control everything. The problem is that no one has yet invented a more “fair” system than capitalism and that works. The other end of the spectrum is N. Korea, Russia and all the other dictatorships around the world.
“Fair” is not working hard and then opening your wallet to those who refuse to work, refuse to educate themselves or simply just want more of which they feel they are “entitled” to as if it is our obligation to give others more “stuff”. The only thing one is entitled to have is freedom, and the right to prosper by having a fair playing field for an education, rather than redistribution, disguised as the “Trojan Horse of Fairness”, by Obama.