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Our current economic mess

By Col. Stan Gudmundson

Fri, Mar 1st, 2013
Posted in All Commentary

More than 30 years ago I watched a five-part special on the military that one of the big television networks ran. It was full of inaccuracies, misrepresentation, and outright lies. It was garbage, or as close to it as you can get. That was a tipping point. After a being constantly irritated by distortions and foolishness, I gave up watching the news. I haven’t watched any television news since, to include Fox.

Also, I have gone to only one movie in the last 25 years. To check how “with-it” I am, I thumbed through the lastest issue of my wife’s People magazine to see if there were any people I recognized. In the 150-plus pages I recognized only five. Dr. Phil, Ellen Degeneres, Elton John, Miss Piggy, and Kermit the Frog. Moreover, I haven’t paid much attention to what politicians from either party say either. I feel a whole lot better.

How then, do I try to understand what is going in the world? I read. Mostly books and good journals and very little that shows up on the internet. Since I don’t listen to much of what politicians say, how do I make up my mind about them and positions they take?

That’s the easy part. Mostly I watch what they do. And then I watch what those results are. That is why I am conservative and no longer a liberal. So, how are we doing?

•FDR created Social Security 75 years ago.

•Fannie Mae has been around for 72 years.

•Medicare and Medicaid were started 45 years ago.

•Amtrack was established 42 years ago.

•Freddie Mac began 39 years ago.

•Government has run the Post Office for 235 years.

Any common theme here? Actually there are two. First, they are all government creations designed to make our lives oh so much better. Second, they are all broke or need huge taxpayer subsidies.

In addition, LBJ initiated the War on Poverty 46 years ago. After spending trillions of dollars it has been a complete failure. It is now costing us over $1 trillion a year.

33 years ago Carter gave us the Department of Energy. Its principle goal was to help decrease the country’s dependence on foreign oil. It too has failed completely. But it still has 16,000 bureaucrats employed on a $24 billion annual budget.

Great track record isn’t it? Now liberals want us to believe that Obamacare will save money and also provide better health care.

But there are still left-wing kool-aid drinkers out there who believe every one of our country’s problems is caused by conservatives. I recently read an editorial in another newspaper that is classic. It starts with, “trash-talking, haphazard-acting neoconservatives are still trying to frustrate liberals.” He also says, “Does it help that conservatives ignore America’s monetary problems?”

This guy hasn’t taken just a sip or two of toxic leftist mind-altering kool-aid, he’s drunk gallons of it. Conservatives obstructionists to our fiscal problems? Really? In spite of a law requiring that a budget be passed every year, the Senate hasn’t passed one in over 1300 days. There is little evidence that Democrats in the Senate have even tried.

Moreover, budgets submitted by Obama can’t even get any Democrat votes. Consequently we go from one continuing resolution crisis to another. But Democrats and the press as well demagogue Republicans for their failure to compromise.

How can the House of Representatives compromise with the Senate if the Senate doesn’t pass its version of the budget? The House can’t compromise when Senator Greed provides only nasty partisan hot air as a basis for passing a budget for the president’s signature. Under these circumstances it is literally impossible to get a budget passed. It makes great press to skewer and bully Republicans, though. In addition, it serves to hide what this administration is doing with revenues they get. Further, these crises provide opportunites Democrats never want to waste. Compromise does not mean Democrats get their way while Republicans don’t.

That writer also said that “America’s monetary problems...began with the Bush tax cuts, and are now responsible for half of America’s deficit.” This is childishly ridiculous. In believing that, the author reveals an unbelievable level of ignorance about economics and the appalling effect of government social engineering in the housing market.

Read Tom Sowell’s Housing Boom and Bust for a grim description of what happened. When you are done with that, let me know because I have a long list of other books for you that provide even more detail about the folly of liberals effort to put people in houses they could not afford or pay for.

I once heard of a banker who had a simple three-part approach for approving loans. His first rule was, can the person pay me back? Second, will they pay back? And third, if not paid, can I recover all of my money? If the answer was no to any of these three questions, he wouldn’t approve the loan. In simple form, his approach is the basis for a sound banking system and economy.

In large measure, our current economic mess was caused by government insisting that banks not follow all of these tenets. Not only were banks forced to ignore one or more of these rules, at one point government insisted that all three be ignored. Gotta get everyone a house you know.

If you don’t or refuse to understand this, your kool-aid intake was very likely intellectually terminal. In other words you are a low-information voter who likely will never ever be a high-information voter. Or you could be just a slow learner transplant from Pennsylvania.


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7:31:05, Mar 4th 2013

I believe it's Ellen Degeneres and not Degenerate as you've spelled it.

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