Here's to Despotism! (printable)

Topic: Government
Here's to Despotism!

We've been flirting with socialism in the U.S. for decades, however, now we are looking at it on a major scale. With the ill-fated bailouts and stimulus' we began to see the inevitability of government coercion in private industry.
by Aaron Emery
(libertarian)
Tuesday, March 24, 2009

Since the fall of 2008 we have been living in an implied socialist republic. Perhaps more appropriately, we have been living in a socialist-leaning nation where we elect(ed) our socialist-leaning representatives. I use the term "implied socialist-republic" because it is not overtly stated that it is indeed socialism, yet we can see the effects through the actions and intent of the federal government. And it's getting worse. If the administration had it their way they would cure the world of all suffering, evil, unfairness, misfortune...and oh yes, opportunity. This sounds good and well (not really), but in reality it is as unsustainable in America as our ability to continue printing and borrowing money at will and not suffering massive blowback for it.

We've been flirting with socialism in the U.S. for decades, however, now we are looking at it on a major scale. With the ill-fated bailouts and stimulus' we began to see the inevitability of government coercion in private industry. If you give a mouse a trillion cookies he'll want a trillion glasses of milk - and now the federal government is trying to claim that milk from you and I and apparently any company it feels it should.

The Obama Administration is currently lobbying Congress for the "authorization" to seize any non-banking financial institution. Let's assume that most Americans understand this to be a heinous, corrupt, and outright illegal act. Congress does not have the authority to authorize the government to do so. Even if it does happen "legally" (asking Congress as opposed to telling), it still remains unconstitutional, thus illegal to do so. The power that the administration is seeking is the ability to seize any non-banking financial institution (investment firm, hedge fund, insurance company, etc.) if they foresee financial struggle within said company. The idea is that the government, after stepping in, will do a better job of managing the business, transactions, and contracts of these companies.

What's especially amusing (sickening) about this is that the companies it intends to take over are in the business of.....making money. They didn't do too well, for whatever reason, and the government feels that they can do better. The government is not in the business of making money, however, they only operate at cost to U.S. taxpayers and thus do not retain the interest, experience, capacity, and knowledge to do so. They understand how to make money even less than these failing companies do!

The most likely entity to retain this power, if given, is the Federal Reserve. The Federal Reserve is the sole issuer of domestic currency in the U.S. and its role is to maintain a stable currency and supply of money. Since its inception in 1913 the dollar has lost more than 95% of its value. According to the CPI (consumer price index) what took $1 to buy in 1913 cost $21.57 in 2008. You can view CPI numbers by year at [link edited for length]. How's that for track record? It's noteworthy to mention that the Federal Reserve is a privately owned company and is in no way accountable to the government. Congress does not even know how or where it issues the money it creates or in what amount. The Federal Reserve is entirely unconstitutional and illegal. Who cares what is or is not unconstitutional though. In the words of former President George W. Bush (another despot); "The Constitution is just a god$@mn piece of paper!". Good thing we have Presidents on our side. I digress.

Somehow the government feels that the Federal Reserve will do a better job of producing prosperity in a broken company than the original company did. This whole issue was prompted by public outcry over bonuses paid to AIG executives after receiving billions in bailout money. The government has blamed their irresponsible spending on AIG's irresponsible spending....of our money. The root problem is not AIG spending irresponsibly, yes that occurred, but they should have never been given that money in the first place. Rewarding incompetence by bailing out any company is diametrically opposed to the principles of free enterprise. The government merely invokes the fear of economic collapse any time it realizes that its policies have not worked as planned. They create more answers to the original problem, yet all are a fallacy. It is now simply trying to cover its tracks with manure. The tracks are still there, but now there's crap all over the place.

What is to stop the government from interfering with any other industry at this point? It only needs to invoke the fear clause in order to pursue more failed agendas, legislation, and tinkering. Companies that should have been allowed to fail have been propped up, thus preventing those to blame from learning from the mistakes made and creating the illusion of progress. With this provision the government seeks the ability to amend or abolish business practices, models, and contracts however it sees fit.

Failure is opportunity, opportunity for someone else to rise up in the wake and provide that product or service at a better value and more successfully. It is delusional to think that no one could possibly fill the gap these companies should have left behind. With this unprecedented move the government has taken the next logical step from socialism. Government coercion in private industry reeks of communism and can only serve to oppress the people it was intended to "liberate". If Congress does give this "authority" it will unleash the salivating dogs of despotism upon the populace and serve to further hamper economic growth and recovery. We should all be familiar by now of the ineptitude and inefficiency of the federal government in dealing with nearly any problem. It simply doesn't work.

These businesses will fail with or without government help. The end state will be more wasteful spending at our expense and further destruction of private industry in general. But hey, they mean well right?

Let us all raise a glass to coercion and despotism tonight. We'll all be drinking the same thing soon enough, so enjoy it. Cheers!

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