Over at The Other McCain, Smitty has two economics articles that, on the surface, appear to be competing with each other. Either the Liberals are outright economic buffoons (which most grass-roots Liberals are) or they are evil plotters, scheming to destroy the “US as it is” and replace it with the “US as it should be” (which many Ruling Class Leftists are).
The economic buffoon is Larry Krugman, whom Dr Paul E Peterson (Henry Lee Shattuck Professor of Government; Director, Program on Education Policy and Governance at Harvard University; Senior Fellow, Hoover Institution) deemed “a nobel prize winning fraud.” Do note, Krugman is part of the Ruling Class Leftists club, but he feeds the simpleton minds of the drone class with his stupidity.
Krugman begins his NYT editorial recounting that the whole Wall Street crisis occurred on Bush’s watch. *Yawn*
So what’s the solution? The answer is regulation that limits the frequency and size of financial crises, combined with rules that let the government strike a good deal when bailouts become necessary.
I guess in the twisted mind of Krugman, regulation is like free speech; the answer to bad regulation is. . .yes, more regulation! In my ideal world, Krugman and his ilk would be forced to study control theory, where they may learn that the wages of more regulation is an overdamped system. In an ideal world, it may be OK, because almost nothing happens. In reality, you get the USSR.
Less regulation. Smaller markets, where the risks are more transparent, and the government isn’t finger-faddling everything. Crashes are like winter, a natural part of the system, chum.
Of course, Krugman goes on to explain how business leaders gave money to Republicans because those business leaders weren’t thinking about business but rather about people who were getting their sex on and the business leaders didn’t like it, or somesuch rot. It doesn’t fit at all in his nonsensical economic chatter, but it fits in perfectly in his nonsensical chatter.
Krugman really needs to learn a little about economic systems so he can quit teaching the lemmings a bunch of lies. In a vibrant, dynamic economic system, there is an absolute need for down cycles. It is those down cycles that keeps the economic system healthy; the loss of the down cycles causes the death of the economy itself.
If you have a rose garden but you never weed it, your rose bushes will be strangled by all the weeds. Your rose bushes will die, leaving nothing but weeds, and you’ll no longer have a rose garden but rather wild wilderness. If you never prune your rose bushes, you will not have any long-stem roses and the roses you do have will not be as large and magnificent as they could’ve been.
If you have fruit trees but you never prune them, the end result will be a lot of tiny fruits that are practically useless. There will be almost no benefit at all out of the trees. The branches themselves won’t be thick enough for fruit-bearing or for use as wood. The pruning of extraneous branches causes the other branches to get more nutrition, grow larger and thicker, and produce quality fruit.
The same goes in a vibrant, dynamic economic system. If the bad business structures are not allowed to fail and die, the economy as a whole suffers. The whole system will then crowd out the good businesses, not allowing them the food to grow and not allowing them to produce as well as they could, had the bad businesses been allowed to be pruned out by market forces.
Thus, preventing the natural economic cycle to run its course does not kill the bottoms. It kills the tops. It “manages the decline” until there’s nothing left to “manage.”
Insty links Victor Davis Hanson on the topic of America being in decline when many indicators argue for improvement.
Like Britain just after World War II, we have a leadership class that fundamentally doesn’t like the country it leads as it is, and wants to change it into something . . . less.
…
So is that a fair comparison with our Progressive Ruling Class?
I’d contend that our PRC isn’t interested in replacing the U.S. with something less. I daresay they want to scuttle the country, for all intents and purposes, by gaffing off immigration and border security, letting unions price American labor out of the market, and turning our schools into incubators for Marxist zombies.
Cloward-Piven, anyone?
According to Discover the Networks.org:
Rather than placating the poor with government hand-outs, wrote Cloward and Piven, activists should work to sabotage and destroy the welfare system; the collapse of the welfare state would ignite a political and financial crisis that would rock the nation… [Emphasis added. (by AT)]
There are different forms of disagreement. If Smitty were to say “The Pittsburgh Steelers will beat the Georgia Bulldogs 17-3,” and I said “I disagree,” that does not mean I think the Bulldogs would beat the Steelers. My disagreeing position would be “The Pittsburgh Steelers will lead the Georgia Bulldogs 49-0 at halftime and the game will be called.” The outcome is not in doubt, only the degree of devastation. I believe Smitty’s disagreement with Instapundit is the latter form; amplitude as opposed to direction.
Now, I don’t know if the fraud Krugman is a Ruling Class fool or a Ruling Class Elite working on fooling all the lemmings, but his work fits in with the “stupid” while the work of Ruling Class Leftists like the One-Worlder Socialist George Soros (who has absolutely no pangs of guilt for enriching himself by helping Nazis steal the wealth of the Jews) are indeed Hellbent on destroying the US economically (because, as Soros said, the US stands in the way of One-World Socialism).
The Ruling Class Leftists hate the Free Market because they cannot control it for their purposes. The lemmings hate the Free Market due to ignorance and Class Envy (which is a sin, a clear breaking of one of the Ten Commandments). And, while the lemmings continue to hate business because… well… it’s business and all business is evil, Evil, EVIL, they will never wake up to realize what they helped the Ruling Class do to them.
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