Eleven months ago, in the face of a gauntlet of headwinds that the Obama administration was creating in front of the American job creation engine, I came to the following conclusion:
“If you were an entrepreneur, or a business owner or manager with the ability to start large new initiatives, perhaps ones requiring large numbers of new employees, in the face of the above legislative uncertainty, would you dare proceed?”
The resulting economic lockup, and the trillions of private capital sitting in fear on the sidelines, has become the story of the day.
Predicting this story was not difficult, due to the nature of The Machine itself. Driven by a lust for power, fueled by environmental extremism, economic illiteracy, and class warfare, and financed by a self-serving cycle of union cronyism, there can only be one conclusion: The Machine is antithetical to the founding principles that made this country great, and can only produce seizure. Here’s how it breaks down:
A Lust for Power
This is the core principle behind every Big Government scheme that has ever been devised. It is the reason that Health Savings Accounts have not been promoted instead of Obamacare. It is the reason that Keynesian “stimulus” is still the statist’s preferred economic weapon. It is the reason why all fifty states are not Right To Work states. Simply put, the programs of Big Government exist to perpetuate the power and influence of those in charge, with no regard of their effects to their constituencies. Under this worldview, any failure of policy can be traced back to a lack of financing or scale.
With the hoax of human-caused global warming now fully exposed as a funding-perpetuation scheme, it is nothing short of criminal that sweeping, multi-hundred billion dollar legislative initiatives based on faulty science are still being promoted. But again, if power and control are the real objective, rather than protecting the environment, with the help of a complicit media, such inconvenient truths can be brushed off.
In an environment where high schools and colleges rarely require any kind of economic education, combined with an increasing disregard for our Constitution, our public policies suffer accordingly. Policies devised by such economic illiterates that mathematically cannot work can be sold via Teleprompters to a large portion of the public that is ill-equipped to challenge them. We are now reaping what we have sown.
Following a divide and conquer strategy, the statists seek to pit some groups in society against others. Given the mathematical impossibility of financing an ever-enlarging state, the promoters of Big Government seek their life blood from “the rich”. Economic illiteracy plays a big role here, in that the critical role the rich play in financing the economy, and indeed, in financing the very schemes of Big Government, is never discussed. Big Government needs the money of the rich, so they must be demonized in an attempt to motivate the rest of society to expropriate and redistribute their assets.
Government Intervention, Job Destruction and Lost Government Revenues
As more and more intervention takes place based on the fallacies of the above, job destruction can be the only result, as the real creators of jobs, entrepreneurs, decide that taking a risk to create a job is simply not worth it. Furthermore, those with large amounts of assets, “the rich”, engage in what Ludwig von Mises called a “flight to the real”: fearing that the value of financial wealth can be manipulated by government policy, people seek tangible assets instead, like commodities and collectibles. These assets wind up creating no new wealth. As the job engine slows and corporate and individual revenues fall, government’s share of those revenues falls in sympathy.
Public Sector Unions, Calls for Tax Increases, Mandatory Union Dues and Political Donations
Rather than recognizing the root causes, class warfare groups, often funded by Public Sector Unions, such as New York’s Working Families Party, attempt to make up the lost revenues by Calls for Tax Increases. Never mind that such tax increases never produce the projected revenues (as the economic illiterates fail to acknowledge the power of incentives). And here we enter an entire mini-machine of destruction.
The unions, with their mandatory dues, take their considerable resources and via Political Donations, promote politicians that will keep The Machine in action. The unions have their own Lust for Power, as the union helps only itself in the aggregate, and cannot bring about any net positive benefit for the majority of their members. Their very presence reduces the wages of the capable at the expense of the incapable, and often reduces to a game of nothing more than a parasite trying to keep its host alive.
Unions wouldn’t possibly support such commonsense legislation as Right To Work, because it is an existential threat to their entire machine. But the fact that such legislation would even been necessary, that we have to affirm the right for an employer and an employee to voluntarily enter into a mutually beneficial economic arrangement, indicates just how much damage The Machine has already done to the economic mindset in this country. Knowing how this truth can not stand the light of day, unions instead attempt to hide their legislative motives behind innocuous sounding names like The Employee Free Choice Act (which actually has nothing to do with making choices freely).
In all, The Machine creates an environment ripe for corruption, as the stakes are very high. It is said that people rob banks “because that is where the money is”. In Big Government, with crony-capitalism running amok, it is well worth the lobbying effort to attempt to rig the game in your favor. This in turn fuels cynicism about government itself, causing a large percentage of voters to tune out.
Breaking the Machine
Fortunately, the Machine can be stopped in its tracks, first by recognizing its parts, as I’ve done here. But more importantly, the politicians that support this Big Government vision can be held accountable, and replaced as necessary. Throughout their terms, regardless of what they’ve promised, their day-to-day votes are out of our control. For one day, every two years, the tables are turned.
You know what to do.