Government Interventionism – A Recipe for Economic Disaster
The lessons of history prove beyond any reasonable doubt that all government interventionism on the marketplace creates economic distortions, lowers the productivity of labor and results in social unrest. Yet politicians continually wax on about how another regulation, more taxes or whatever nonsense their spouting is the panacea for what ails the economy. And the masses—as incredible as it may seem—eat all of this up as if they are consuming a magic formula for prosperity.
It appears that the old virtues of free enterprise, hard work, self-discipline, saving money, weighing the short-term consequences against the long-term consequences, etc. are unpalatable to the vast majority of people. So they allow themselves to be mislead by the false promises of politicians, civic leaders and pseudo-intellectuals. These masters of deception “guarantee” they can deliver the “Horn of Plenty” when what they actually stick you with is the “horned—well you know”—delivered ungreased up the ___—you get the idea. How painful! Unless most of these people are masochists you would think they’d get sick and tired of this cruel treatment. But they keep voting for more of the same.
Following are examples of some uncensored, sado-masochistic government interventions.
Price Controls
Price controls on goods and services are self-defeating. They cause shortages or surpluses of the good or service that is controlled. The market price for any product on an unhampered market corresponds to reality. Anyone who wants to buy this good or service and can afford it has no problem procuring it.
If government sets a price of a good below the market price it causes shortages. Marginal producers can no longer profit so they go out of business. Producers divert production to unregulated goods and services. Instead of getting a better deal the consumer finds that he can no longer buy the item—unless of course he is resourceful and has inside contacts.
Once this begins happening the government may resort to rationing, which only exacerbates the problem. And you know who benefits from rationing—insiders who have special connections with big business and (or) government.
Black markets also thrive. Those hardy individuals—who aren’t deterred by laws and regulations—will have no problem buying what they desire. The honest citizen is, of course, screwed. He has to do without—or at best wait in long lines to buy what he may so desperately need.
Minimum Wage Laws
I challenge you to suggest that minimum wage laws cause unemployment and are detrimental to the very people they’re supposed to help. I guarantee that liberty violators, altruists, do-gooders and other assorted enemies of freedom will call you an apologist of capitalistic interests—or even worse.
Whenever a price for something is set above the actual market price the result is a surplus of that good or service—and wages are no different. If a person’s services are only worth $5.00 per hour and the minimum wage is $6.00 per hour the person is unemployable. A company can’t hire workers who don’t add profits to the business. If they did they would soon be out of business and replaced by companies that more efficiently satisfy the consumers’ most urgent desires. A line of business that could only operate by hiring workers for $5.00 per hour or less might completely vanish from the market place.
In the old days, companies would hire apprentices—young people eager to learn a trade. Employers would pay them a minimal wage—but what is more important is that they would give inexperienced workers the chance of learning a vocation—hope for the future. Later they would be worth much more than any minimum wage could supply them. Sadly, minimum wage laws have eliminated these opportunities with tragic results for young people—especially minorities.
Incidentally, competitors would quickly undercut a company that attempted to charge too much for its products and services. And if they tried to get by with underpaying their workers they would soon lose them to other employers who would pay them what they are worth.
Don’t expect politicians, government bureaucrats or “intellectuals” to inform you of the facts of reality. The last thing they want is for you to become familiar with the basic laws of economics. If you “wised up” they would be forced to discontinue their cruel, sadistic political games. And sadists need masochists. I bet voting day is an orgiastic experience for all of these liberty violators.
1913—The Year of the Raping of the Masses
In 1913 greedy, special interests created The Federal Reserve System and The Federal Income Tax. These put the sadists (political establishment) in charge of our currency and allowed them to begin picking our pockets. They began their orgy of tax, spend and regulate. The raping of the honest citizen—the productive hard working individual was in motion—full speed ahead. Since then, politicians, their big business cronies, bureaucrats and pseudo-intellectuals having been running “train” on the hapless citizen.
Its no coincidence that since powerful, special interests successfully helped created The Federal Reserve System the dollar has lost over 95% of it value. And since The Federal Income Tax was instituted—let the Beatles explain what has happened.
“Taxman” by the Beatles
If you drive a car,
I'll tax the street.
If you drive to city,
I'll tax your seat.
If you get too cold,
I'll tax the heat.
If you take a walk,
I'll tax your feet.
Taxman!
'Cause I'm the taxman.
Yeah, I'm the taxman.
Don't ask me what I want it for,
(Uh-uh, Mr. Wilson.)
If you don't want to pay some more
(Uh-uh, Mr. Heath.)
A Recipe for Disaster
The truth is plain to see. Government interventionism benefits only those in charge and their favorite sons. Everyone else gets—well you know. Only unhampered capitalism is an honest system that protects an individual’s life, liberty and property. All other social systems are detrimental to the masses’ best interests.
Will we continue to allow politicians, bureaucrats and pseudo-intellectuals to prepare a recipe for disaster—one that is poisoning everything that is just, honest and sublime? Or will we demand the social system of unhampered capitalism—a “society” that practices libertarian principles—one that serves a recipe of personal liberty, freedom and prosperity. We need to make the choice—a choice that benefits not only us but also our children’s children’s children—while we still have a choice.
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