This below is an article taken from the Patriot Post and linked accordingly. All of us in NW Indiana should carefully consider the philosophy as expressed here. Right now we in Indiana and in the USA are engaged in a war of philosophies, a fight between freedom and Statism. Statism uses catastrophes (such as the Gulf Oil Spill) as an excuse to pass more regulations, create new agencies and take more of your dollars in the process. This coming election is crucial to this country, because if we do not vote the Statists out of office then we will get what we deserve.
"As government expands, liberty contracts " -Ronald Reagan
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By Thomas Sowell (Archive) · Friday, June 18, 2010
Sometimes you can read a book that will change your mind on some fundamental issue. Rarely, however, is there just one page that can undermine or destroy a widely-held belief. But there is such a page-- page 77 of the book "Out of Work" by Richard Vedder and Lowell Gallaway.
The widespread belief is that government intervention is the key to getting the country out of a serious economic downturn. The example often cited is President Franklin D. Roosevelt's intervention, after the stock market crash of 1929 was followed by the Great Depression of the 1930s, with its massive and long-lasting unemployment.
This is more than just a question about history. Right here and right now there is a widespread belief that the unregulated market is what got us into our present economic predicament, and that the government must "do something" to get the economy moving again. FDR's intervention in the 1930s has often been cited by those who think this way.
What is on that one page in "Out of Work" that could change people's minds? Just a simple table, giving unemployment rates for every month during the entire decade of the 1930s.
Those who think that the stock market crash in October 1929 is what caused the huge unemployment rates of the 1930s will have a hard time reconciling that belief with the data in that table.
Although the big stock market crash occurred in October 1929, unemployment never reached double digits in any of the next 12 months after that crash. Unemployment peaked at 9 percent, two months after the stock market crashed-- and then began drifting generally downward over the next six months, falling to 6.3 percent by June 1930.
This was what happened in the market, before the federal government decided to "do something."
What the government decided to do in June 1930-- against the advice of literally a thousand economists, who took out newspaper ads warning against it-- was impose higher tariffs, in order to save American jobs by reducing imported goods.
This was the first massive federal intervention to rescue the economy, under President Herbert Hoover, who took pride in being the first President of the United States to intervene to try to get the economy out of an economic downturn.
Within six months after this government intervention, unemployment shot up into double digits-- and stayed in double digits in every month throughout the entire remainder of the decade of the 1930s, as the Roosevelt administration expanded federal intervention far beyond what Hoover had started.
If more government regulation of business is the magic answer that so many seem to think it is, the whole history of the 1930s would have been different. An economic study in 2004 concluded that New Deal policies prolonged the Great Depression. But the same story can be found on one page in "Out of Work."
While the market produced a peak unemployment rate of 9 percent-- briefly-- after the stock market crash of 1929, unemployment shot up after massive federal interventions in the economy. It rose above 20 percent in 1932 and stayed above 20 percent for 23 consecutive months, beginning in the Hoover administration and continuing during the Roosevelt administration.
As Casey Stengel used to say, "You could look it up." It is all there on that one page.
Those who are convinced that the government has to "do something" when the economy has a problem almost never bother to find out what actually happens when the government intervenes.
The very fact that we still remember the stock market crash of 1929 is remarkable, since there was a similar stock market crash in 1987 that most people have long since forgotten.
What was the difference between these two stock market crashes? The 1929 stock market crash was followed by the most catastrophic depression in American history, with as many as one-fourth of all American workers being unemployed. The 1987 stock market crash was followed by two decades of economic growth with low unemployment.
But that was only one difference. The other big difference was that the Reagan administration did not intervene in the economy after the 1987 stock market crash-- despite many outcries in the media that the government should "do something."
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The above post by Sowell, a brilliant man, should make us think about every single office we fill in November. When you think about it, often a County official becomes a State official and then runs for Federal office. You cannot ignore the philosophy of governance when you vote for a County Commissioner any more than when you vote for a US Senator! Furthermore, it is the job of the voter to keep tabs on a man or woman voted into office to see if they experience "incumbency drift" towards the middle or even towards the other side of the political scale. Would you believe Dick Durbin began his political career in Illiinois as a moderate? As late as 1989 he was a Pro-Life advocate until, he says, he talked to a couple of pregnant teenagers who had been raped...but it is more likely that political contributions (NARAL and Planned Parenthood) did the trick.
Both Durbin and Obama got jobs working with other politicians and connected to other politicians before they ran for office. Durbin was a lawyer with Paul Simon and later ran for Lieutenant Governor of Illinois unsuccessfully before being elected to Congress. Obama was a "Community Organizer" at one point, served on couple of boards, was mysteriously rushed through Columbia and Harvard and, no, I will not go down the Barry Soetero road right now. But he was elected to Illinois State office before running for a Federal office and his voting record should have frankly scared voters had they bothered to look it up.
Barack Obama began his political career running as a Socialist with the
New Party. The evidence is that he has, if anything, drifted farther left until he has become a Monarchist. For you see, when you look under the liberal hood you find elitism is the engine. We are watching
Animal Farm in action. S
ome animals are more equal than others. Guess what? Unless you are a Washington Insider and/or one of the money men associated with them, you are one of the "others." George Orwell's novel was written as a satirical stab at Stalin and the Communists, who had replaced the Russian monarchy with an even more terrible form of tyranny through brainwashing, manipulations and murder. Hitler, Stalin and Mao were all Socialists, by the way.
The common man likes to blame "THEM" for the problems of the world. "THEY" are greedy or stupid or mean or incompetent. Guess what? YOU are the people who either vote or do not vote, YOU are the people who elect "THEM" to public office by either voting for them or by not bothering to go to the polls to vote against them. If Barack Obama
fiddles while the Gulf's environment "burns", so to speak, guess what? You are the ones who voted him into the White House. Oh, and by the way, Nero was probably half-mad from lead poisoning and like many other leaders of Rome at the time, was killing himself and
losing his mind from the content of lead in their favorite drinks and their indoor plumbing. Barack Obama is deliberately ruining America. That is probably more frightening. He isn't crazy, he is intentional. Even his inaction is an action. Think on that for awhile...