January 10, 2009

Economic Stimulus Plan

I have a dream - that America's political economy will return to something akin to the late 19th century. Referring to the causes of the latest economic crisis, Yaron Brook and Don Watkins of the Ayn Rand Institute write in their editorial 'Stop Blaming Capitalism for Government Failures:'

None of this is consistent with capitalism. As the economic system that fully recognizes and protects individual rights, including the right to private property, capitalism means, in Ayn Rand’s words, “the abolition of any and all forms of government intervention in production and trade, the separation of State and Economics, in the same way and for the same reasons as the separation of Church and State.” Laissez-faire means laissez-faire: no welfare state entitlements, no Federal Reserve monetary manipulation, no regulatory bullying, no controls, no government interference in the economy. The government’s job under capitalism is single but crucial: to protect individual rights from violation by force or fraud.

America came closest to this system in the latter half of the nineteenth century. The result was an unprecedented explosion of wealth creation and consequent rise in the standard of living.

JK, like the respected Denver radio host Mike Rosen, constantly reminds us to practice the "politics of the possible." But why should it be impossible for a majority of voters to recognize that the big government policies Obama and company may enact just made the problem worse - and they will - and abandon him in droves for the 2012 GOP candidate? This is the "new Reagan" scenario that many have written about. But for this to happen there needs to be a GOP candidate who understands the capitalist ideal before he jumps into the hog wallow to compromise with collectivists. John McCain and George Bush (both of them) despite all their admirable traits, were not that candidate.

Economics and Markets Obama Administration We're from the government, and here to help. Posted by JohnGalt at January 10, 2009 1:12 PM

Wow, this Rosen fellow sounds very intelligent...

I share your enthusiasm for the economic policies between the Civil War and the Progressive Era. It was certainly tainted by Jim Crow but I find it easy to call them unrelated. Hayes was the right pick in 1876 and if Tilden had not forced the Compromise of '77 we could have had economic liberty and continued the Reconstruction.

Gene Healy points out that while we had the string of non-descript, "non-heroic" presidencies between Grant & McKinley, we surpassed Great Britain as an economic power.

On the Pragmatism side, jg, put me in with Rosen (I have not heard his show but I've read some of his newspaper columns and heard great reviews from my brother-in-law). I challenge you to look at a group with minimal selection bias and tell me that a majority would agree that welfare and social security should be terminated. I think you'll find it more matches Pew's famous nine-percent. (Again, no fair polling at the Objectivists of Weld County quarterly bake sale and skeet tourney.)

I could not disabuse a right-leaning relative yesterday of the belief that the USDA is only reason the big grocery stores don't sell rancid meat. I can't think of a group of workmates, family, musicians, or friends in which a majority prefers less government "safety-net" security.

I enjoyed the Brook-Watkins piece very much, and I'd be inclined to support a candidate who voiced such beliefs. But I'd be among the few. Rep Ron Paul was able to augment his libertarian followers with a good number of the rabid anti-war left. And he still lost. By a lot.

It's hard for you and me to believe and accept that our zeal for liberty does not enjoy an electoral majority, but it does not. You can write editorials for the Ayn Rand Institute and link and discuss them on ThreeSources. But you'll be a spectator at the next contest between the next McCain and the next Obama.

Posted by: jk at January 11, 2009 12:44 PM

... welfare and Social Security TERMINATED? JK, you are such a tease. Even I don't dream such things are possible in a single bound.

The idea I tried to explain, perhaps too obliquely, is that the 'ideal' of pure capitalism leads to unprecedented prosperity. Any baby steps in the direction toward more capitalism will make things better for all Americans.

As for the popularity of such market oriented changes to welfare and Social Security, even President Clinton had to sign the GOP bill that reformed the former ... and reforming the latter could be equally popular with the right plan. Perhaps as government operated private accounts with gains earned in private equity markets yet federally guaranteed never to decline in value?

If we're going to talk about bailouts anyway then lets consider one that actually provides some real personal financial security. (Tomorrow I'll deny I ever wrote this.)

Posted by: johngalt at January 13, 2009 3:11 PM

But-but-but-but-but-but-but-- you are making the pragmatists' case. I want to fight at the margins and get "as close as we can" to capitalism. For this I seem to be frequently derided as lesser-of-two-evilsism.

I was pulling my absolutism from your excerpt "Laissez-faire means laissez-faire: no welfare state entitlements, no Federal Reserve monetary manipulation, no regulatory bullying, no controls, no government interference in the economy" and from your reference to 19th Century pre-progressive, pre-New Deal policies.

A government risk subsidy is not a bad idea if you could make the right kind of trade. Who is this guy and what has he done to Brother Johngalt?

Posted by: jk at January 13, 2009 4:32 PM | What do you think? [3]