Who is to blame for the financial crisis and the US economic problems? Wall Street or Washington? The simple answer.
Do not read some egg head NY times economist or some economist in Washington with fancy degrees and on a policy board or maybe even a Nobel prize. I will explain the situation, clear and concise. If you want to fix the bust, do not create the boom, economics is based on real value not fake stimulous.
- The Federal Reserve is the engine of the business cycle. It creates unemployment because disequilibrium in the money markets have dramatic effects in the real sector. In the long-term Government spending crowds out investment and stifles creativity and initiative and makes the US less competitive in a world-wide economy. As new economies rise, only building a better mouse trap will help the US compete, not stick your head in the sand protectionism or government expansion.
So if you have not figured it out yet, some greedy bankers with big homes on the Connecticut gold coast of New Canaan or Greenwich pales in comparison to the cosmic proportions black hole of government that is absorbing the US entrepreneurial strength.
- World wide demographic changes and rising new economies to compete with dulled senses intoxicated by political mantras like ‘yes we can’ is the bigger problem. Deploy some uncommon common sense, and look at the world as a whole, what is happening in the world. 1.3 billion Chinese and 1.3 billion Indians are competing with .3 billion Americans. We better be ready, I do not think we are. We will be economically overwhelmed if we do not sharpens our competitiveness and stop blaming some greedy scapegoats on Wall Street, which make us feel good for the moment but not the answer.
Remember for 30 years after WWII the world either had communism, or laid in ruin, so the US did not need to address the global economy as seriously, now for the USA it is sink or swim and the answer that Wall Street not the root of the issue, that is government will bring ruin to the US relative strength.
The answer can be found in Adam Smith, the enlightenment, John Locke. These thinkers fought against thousands of years of history of government tyranny at the expense of the people. Why do we want to turn back the clock to a feudal government power?
Ron Paul write in his book Liberty Defended:
Restraints placed on our government in the Constitution by the Founders did not work. Powerful special interests rule, and there seems to be no way to fight against them. While the middle class is being destroyed, the poor suffer, the justly rich are being looted, and the unjustly rich are getting richer. The wealth of the country has fallen into the hands of a few at the expense of the many. Some say this is because of a lack of regulations on Wall Street, but this is not right. The root of this issue reaches far deeper than that.
The issue is crystal clear for anyone who looks. Expansion of government is crushing the USA in this time because we now must compete globally, to an extent not seen in the past. Washington does not support a policy of free markets which allow the reckless to fall, money to be free and interest rates determined by the market rather than through changing dials and nobs at the Federal reserve bank. It is corporate socialism, a strong armed central government that is in bed with Wall Street players, picking and choosing which feudal lord should have the power and be saved economically. This is not a real free market. Will we pursue policies of Spain in the 17th century or America in the 19th century?
- The most jobs in the USA are created by small businesses and individuals. However, for some reason politics in Washington supports big business at the expense of you.
Ron Paul continues to write:
Understanding how governments always compete with liberty and destroy progress, creativity, and prosperity…
The existence of the wealth-extracting leviathan state in Washington, D.C., a cartoonish massive machinery that no one can control… neither party is truly dedicated to the classical , fundamental ideals that gave rise to the American Revolution.
Who is to blame Wall Street or Washington? I think the answer is clear.