BUD BREWER
One Man's Opinion
TOO BIG TO BE FREE?
July 4,2009: According to Webster’s dictionary, Liberty is “a concept of political philosophy. It identifies the condition in which an individual has the right to act according to his or her own will”. Americans cherish celebrating Independence Day with firework demonstrations and displays emulating that famous naval battle in the war of 1812 when Francis Scott Key composed his poem, “Star Spangled Banner”. As he looked through the smoke of battle that morning, dreading what he would see, his joy was unbridled as he saw the American Flag still flying, over Fort Henry, at the mouth of the St Lawrence River. Deep down in the persona of every American, each year July 4th rekindles their belief that America is the “Shining House on the Hill”. Our freedom and personal Liberties are symbolized by that commanding figure in New York Harbor, the Statue of Liberty.
This concept of liberty, the political philosophy enabling the individual to exercise their free will to succeed or fail, doesn’t seem to be consistent with the current political philosophy of our President, the members of his Administration nor the Democrat controlled Congress and their supporters across this country. When I look at the legislation already passed and signed into law by President “O” and the deep intrusion by this government into the private sector of the economy, or when I read about his proposals for new environmental, healthcare and social legislation, laws and regulations, it makes me conclude that the President and his constituency believe that continuing to allow the free will of individuals to be the driving force of good in this country is too dangerous, and if unmodified, will produce results that are so one sided and inequitable for the masses that it must not be allowed to continue unabated. Well he may have a point. If the standards of ethical or moral behavior are breaking down as evidenced by the Bernie Madoffs and Allen Stanfords of this world, or the economic wellbeing and life style achievements of the general population are deteriorating to a deprived state, then maybe today’s American citizen is just unable to cope with free will. Perhaps a dynamic society such as ours has come to a point where free will and its potential failure is just unacceptable because when we fail we have to face the consequences, morally, physically and financially. But if the American experiment is to continue, dragging the reluctant, disbelievers, and malcontents et al into a better life ahead, President O and his supporters have got to be slowed and eventually stopped or our dream of freedom and personal free will as embraced by willingness to accept personal responsibility for our choices will disappear.
It behooves those who share the fear of this prospect to make a case to those fellow citizens who have a natural conservative bent but have gotten over extended financially and are looking for some way out that seems less painful than facing reality. Mr. O’s message is appealing to people in this position. It sounds like nirvana. The President has promised to have the more wealthy and higher income earners bear an increasing tax burden to help pay for expanded role for government to provide services such as health care, for taking over the automobile business to make smaller more fuel efficient cars even though consumer demand for such has not developed marketwise very much. He plans more and more billions for government managed programs to subsidize insurance companies, like AIG, zombie banks or mortgage finance companies like Citi Bank and FNMA preventing what would otherwise be their natural failure. Those supporting the President’s huge government spending programs to fund alternative energy programs for wind and solar energy farms or fuel cell technology thinking that it will make the U.S energy independent may not be aware that except for nuclear power, allegedly, such energy sources will cost anywhere from 2.5 times to 6 timas as much as the energy we use currently from fossil fuel sources and it will provide less than 3-4% percent of our national demand for energy by 2015. Had enough? How about the President’s idea to fund college education for all whom otherwise have not prepared for such expenses? Other ideas put forth by this administration include the dangerous precedence to supposedly help consumers by interdicting limits to interest rates that the credit card companies may charge higher risk card holders. Yes, this is an attempt at price controls and we all should know enough economic theory to appreciate that price controls will dry up credit supply fast.
With what appear to be a series of dangerous, sometimes self serving, ideas to control or unnaturally influence the forces of economic science especially the market clearing function of demand and supply, this administration is in the process of seriously inhibiting our future economic growth. The unfettered market system of allocating capital to economic need is not free of pain for some, certainly more than we would like, but it will generate growth in domestic product and personal income from real, not artificial jobs, and if properly supported by fair and constructive government regulations will raise standards of living again.
Sounds reasonable doesn’t it? For most of my life, I have been a principle in the business world, in particular, the investment management and financial services industry. I have recognized, as I hope most fair minded people do, that there must be rules and structure before you can play the game. Fairness is a measure of setting restrictions that any advantage gained by one person over another or one organization over another is the result of their skill, talent, or organization’s effectiveness and not the open end ability to overpower your opponent or exercise authority in a deceitful manner. In our system, people expect to have the President and the Congress set the boundary rules but under few if any circumstances, is the government (referee) expected to play in the game.
In its brief 233 year history, the American economy has become the largest economic engine in the world and continues so even today though the 44 country members of the European Union have a combined GNP comparable to the U.S.A. economically and are often referred to as a single geographical entity. Our GDP is over 27% of the total global production or an amount equal to $14.5 Trillion per year, three times the size of the next largest country, Japan. We have developed an incredible level of technology, scientific discoveries, modern communication and transportation systems along with industrial production efficiencies that along with our highly educated and productive work force responding to behavioral incentives like non confiscatory low taxation and limited government has lifted the standard of living for all but a few of the 250 million people living here. We must not let a power grabbing government change the calculus of how we got here.