TFP Column: Government "Prop"aganda

I was late this week in attempting an effort for the TFP, and Editor-in-Chief Michael Miller may have thought that he had escaped at least one week without having to deal with my illiterate scribbling.  As much as I like Michael however, I found myself caught up in the books on Economics that I have been reading for the last couple of weeks.

(Reading books on Economics for fun ... am I living the dream or what!)

I only wish that some of those in government had read some of the same material that I have, and we might all have been spared a good deal of misery (and a larger portion of debt) in the last couple of years.  

Applying my 'book learning' to the situation at hand (the next proposed Stimulus), led me to put together a piece called "Government 'Prop'aganda", which discusses some $447 billion in props to the economy proposed by the President and some of the disinformation surrounding it.

As always, anything worth knowing is going to find its way into the TFP this weekend.  So if you want to know everything that's going on in Toledo and NW Ohio, you're going to have to look in on Toledo's largest Sunday circulation and Ohio's Best Weekly newspaper, the Toledo Free Press.

The New Definition of Govt "STIMULUS"

In perhaps the finest example of cross-disciplinary cooperation in the history of "Just Blowing Smoke", the Department of Just Blowing Smoke Security and the lexicographers of the "Stuck on Stupid" Dictionary have combined their talents to produce this weekend's effort. Senior staff at JBS, understanding that potential jurisdictional disputes could create unnecessary friction; or worse, incite the staff to seek organization under a union, spared no expense in securing the full cooperation of the respective personnel.  

Of course this meant that we had to send out for a pizza with real Italian Sausage from "Italian Delight" and serve it with a choice of Leinenkugel Red or Dos Equis Amber.  ( A few disgruntled scribblers complained about the lack of Guinness as a selection, until it was explained that such nectar can only be served on tap and threatened the removal of alcohol choices entirely as an alternative.)

Setting aside the minor effort at insurrection by this bunch of minimum wage, minimum IQ, and minimum accomplishment slackers; I must admit that this effort is an interesting addition to the growing legends (in their own minds, at least) of both departments.

Government STIMULUS:

Statesmen 
Trying to 
Interfere with 
Monetary policy 
Using 
Larceny, 
Usury, and 
Subterfuge

1.  An attempt by the government to jump start a failing or stagnate economy by an infusion of capital, a program of incentives, or both.

2.  The transference of money from one person (or group of people) to another, so that they can use such cash to stimulate the economy.  Invariably such a transference hurts those it takes from, does not reach those it was designed to, and is not used in the fashion originally intended if by mischance it actually does arrive.  In the process however, more than a little of the cash allocated is siphoned off by the useless drones of government bureaucracy to perpetuate or increase the size of their fiefdoms. 

3.  A misguided misreading of the principles of economics that leads some to believe that the laws of supply and demand will not invariably do a faster and much better job of  returning stability to a nation's economy that any artificial attempts to do so.  

4.  Asinine attempts by politicians to provide a quick fix for the economic malaise using principles that they understand about as well as they understand those of particle physics.  (No wait, not even that well ...)

5.  Ludicrous, nonsensical proposals for economic recovery made by those attempting to run for or keep elected office which are used as little more than a bully  pulpit from which to demonize their political opponents.

6.  A government program which trades failed short-term solutions for long-term stagnation caused by its very interference.

7.  An opportunity for elected officials to line the pockets of selected constituents, lobbyists, and especially donors in the name of 'sharing the burden' of a sagging economy.

8.  Attempts by the public sector to pick winners and losers in the private sector.  In doing this job poorly and indiscriminately, they often decimate such private sector businesses in the process, whether chosen to reap the benefits of such an attempt or not.

9.  Misguided efforts by those who have mostly never run businesses (or held jobs other than in government) to decide how those attempting to do so should be 'helped'.  Not surprisingly, they either cannot or simply refuse to hear the pleas of their intended victims attempting to tell them that in order to do so, they need merely: "Get out of the way!"

10.  Government wealth transfer programs in which some funds are misappropriated, others are misapplied, and still others are simply missing.

11.  An attempt by a government to spend money it doesn't have, on programs it doesn't need, to solve problems it cannot fix.

.

Circular Lending & The Economy

Imagine that you are a family facing tough times (not much of a stretch these days, I know). You have some assets, but lately they seem to be equaled or exceeded by the debt load that you carry. Revenue continues to come in, but it seems that it does so at a decreasing rate. You make your payments (at least the minimum); but with a tough economy, you are finding it tough to balance the budget. As a consequence of the increasing burden on your budget, brought on the the continuing struggle of the economy, you find yourself sinking slowly and inexorably into increasing debt. 

Finally, reaching a point where you think that there is nothing you can do and pushed to your last alternative, you proceed to ...

... sign two new credit card applications and proceed to max the suckers out in an attempt to fix your budget problems.

Sounds pretty ridiculous, doesn't it? There is no way in hell that you can hope to balance household budget by putting yourself into even more debt. Increases in the total interest that you will be obligated to pay on the higher balance, higher minimum payments due because of the increase in debt load that you just assumed, and probably higher interest rates for the money that you borrowed (because your credit can't be that good by now) mean that not only will you not recover from the original problem; but that you will now have created a situation that you have no hope of recovering from. 

So maybe you can tell me why that is exactly what our government just proceeded to do. After complaining for the last eight years the impending doom of government deficit was looming like a Sword of Damocles above the country, the only solution that they can discover is to increase the number of weapons hanging above us. Do the expressions "one-armed paper hanger" or "one-legged man in an ass kicking contest" mean anything to you? Now I am not a leading national economist, but I do have some experience with crushing debt. 

I likewise have some experience with the concept of how to balance a checkbook. Perhaps such talent is exactly what's needed in Congress today. Perhaps the experience of spending other people's money in Congress, of passing legislation on spending that have no real impact over those very members of our legislature, of having the ability to print more money when they run out has simply gone to their head (turning it to the consistency of tapioca pudding). 

Hey, maybe the answer is that I should put myself in line for the job of Treasury Secretary. Maybe in fact, I could just move in and take over the job. After all, I'm sure that to the unwashed public (you know, us) all Timothy's look alike anyway. ... Nah

 

Blast From The Past

I was all set to write what I believed would be a thoughtful, interesting post combining a couple of thoughts that had been occurring to me in recent days. 

The first was something that I have touched on in the past, the concept that society today is too caught up in instant gratification. From microwave food to downloadable movies, we want what we want when we want it, and we can become downright surly when something gets in the way or interferes with achieving any part of the reward that we desire. 

The second was about increasing influence of the government “nanny state” in our lives. Between the increased societal influence of political correctness, the increasingly litigious society that we have become (suing anyone and everyone over any offense, real or imagined), and the increasing role of mindless government bureaucracy in our lives (deciding everything for us from what kind of power plants we can and will have to what kind of bug spray chemicals we can use … remind me to tell you about DDT someday). 

The third was about the dramatic change in our lives that is about to come about as a part of the passage and signing of the Economic Stimulus Package (I refuse to use the made up name from Congress). Even the small part of what I see on the horizon scares the living crap out of me, and I believe that there is far more out there that I do not yet understand. Just when I was poised to produce this masterpiece of logic, reason, and conservative argument, I came across something from my continuing process of adult education. It describes far better than I could, the storm approaching. I share it with you out of a sense of awe and sadness:  

“The power is absolute, thoughtful of detail, orderly, provident, and gentle. It would resemble parental authority if, father like, it tried to prepare its charges for a man’s life, but on the contrary, it only tries to keep them in perpetual childhood. It likes to see the citizens enjoy themselves, provided that they think of nothing but enjoyment. It gladly works for their happiness but wants to be the sole agent and judge of it. It provides for their security, foresees and supplies their necessities, facilitates their pleasures, manages their principle concerns, directs their industry, makes rules for their testaments, and divides their inheritances. Why should it not entirely relieve them from the trouble of thinking and all the cares of living.”
 - Alexis de Tocqueville, from his ground-breaking work “Democracy in Americas”, first printed in 1835  

It’s not that I mind being trumped you understand, but to be put in my place the French no less, and by a man who, while undoubtedly a genius, died almost 100 years before I was born is simply mind-numbing. To have to accept the fact that he saw where this country could be going over 170 years ago when oh so few of us see it happening even now is a tragedy that I am having trouble comprehending.

 

Govt. Stimulus Plan As Plumbing Repair?

Being burdened with the ability to connect things with no seeming connection (while simultaneously not recognizing related things in front of my face) makes my life a challenge from time to time. Many times I am simply not able to put something in its proper place unless I can get a picture in my head to tie it to.

For the last few weeks, I have been struggling for a way to understand the Economic Stimulus Packages, though perhaps the fact that their initials are ESP has been throwing me off. Now I have a real problem with many of the things in these ESP's:

• The original one bailed out the banks to help the markets, but the banks are still in trouble and the market is still in the tank
• Most if the package has nothing to do with economic stimulus
• The package will place my children and grandchildren in tax servitude to the government for their entire lives
• Too many of the jobs that it provides are jobs in government bureaucracy
• It is putting in place needless massive spending programs which will become a permanent part of the budget
• It includes a medical records & review program that I categorically object to
• Overall there is more pork in this program than there is in Iowa

Last night I was finally able to find a picture in my head that describes what Congress has done to me with this package. (now try to stick with me on this):

For some strange reason, Congress knocks on my door and asks to use the bathroom, citing an overwhelming problem that must be addressed immediately. For some even stranger reason, I exhibit a terrible lack of judgment and let Congress into my home to do so. 

In the same way that they have been doing to all of us for years, they go in there and take a crap on a Biblical scale. Completing the paperwork they flush, but the toilet clogs. Attempting to rectify the problem in the only way that they know how, they flush again, and the water rises in the bowl. Not accepting that doing the same thing twice has failed to achieve the originally desired goal, they flush again and again, now spilling water and waste all over the place. Having then achieved as much damage as they possibly can, they exit the bathroom and my home. 

With barely muttered "thanks" on the way out, they go on their merry way, leaving me to deal as best I can with what's been left behind.

Welcome to my world ...

TFP Column: The Era of Big Govt Is Far From Over

 

This week's effort for the Toledo Free Press is speak to the stimulus plan presented by President Obama to cure the nation's economic ills.  It's a far cry from the chant of the last Democratic president, Bill Clinton, who told us that the era of big government was over.

Maybe not.

At any rate, I encourage you to spend a little time with "The Era of Big Government is Far from Over", while catching up with all that's going in in the Toledo Free Press.