Reject the Ideas of Madmen in Authority Who Serve Defunct Economists

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The ideas of economists and political philosophers, both when they are right and when they are wrong, are more powerful than is commonly understood. Indeed the world is ruled by little else. Practical men, who believe themselves to be quite exempt from any intellectual influence, are usually the slaves of some defunct economist. Madmen in authority, who hear voices in the air, are distilling their frenzy from some academic scribbler of a few years back. I am sure that the power of vested interests is vastly exaggerated compared with the gradual encroachment of ideas.

-John Maynard Keynes, from The General Theory of Employment, Interest and Money (1935)

Keynes was right about this- President Barack Obama and the Democrats in Congress distilled the wisdom of John Maynard Keynes and adopted his economic ideas, and the madness and recession and stagnation that resulted are all of their faults. In 2009 at the heart of the recession these fools passed a trillion dollar stimulus bill that was sold to the American people as a way to shorten the recession and return our nation back to prosperity quicker than if we did nothing. Those increased spending levels were afterwards locked in because Obama and the Democrats in Congress who supported him believed that taking away this spending would cause the fragile economy to suffer and lead to more joblessness. And they were wrong about all of their economic ideas and wrong to have voted so and voters were wrong to re-elect them.

The results of the data- the reality of the situation- is that the actions of these madmen in authority made the situation worse and increased joblessness and through their political actions have damaged the life, liberty, and property of millions of Americans. The results- the reality- of the stimulus bill and this Keynesian economic spending is that joblessness went higher and has stayed higher longer than if we would have done nothing at all, according to President Obama and the Democrat’s own analysis. Although President Obama would have you believe that his own analysis was so wrong because he was so incredibly incompetent, most economists at the time were very confident in those numbers and I would trust them over the later argument that Obama was so incredibly incompetent that the numbers were wrong.

The results of the data- and the reality of the situation- is that ideas and theories and beliefs upon which the new modern day Democratic Party are built are wrong, false, untrue, and madness. They are to be rejected and those who believe in them are to be rejected and those who teach them are to be rejected, and in their stead new ideas and theories and beliefs based on experience, history, science, data, reasoning, and faith are to be discussed, taught, and supported.

Graphically, the argument that I am making looks like this, adapted from a graph produced by the American Enterprise Institute in an article called To praise the February jobs report is to embrace the New Normal economy:

Original Post: A Conservative Teacher
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Money For Nothing

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“The common denominator to all of history is that all governments almost universally act irresponsibly to debase their currency.” — Robert T. Lutts

“The abandonment of the gold standard made it possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit.” — Alan Greenspan

Ah, the coin of the Realm … t’was a time when our specie was fashioned of precious metals — silver, gold even — back before America’s elected larcenists decided to mint money from materials with the same intrinsic worth as a Tijuana bus token.  Debasing the currency, of course, is an ancient racket, engaged in by official chiselers from Nero to Nixon. The only thing that ever changes is the names of the thieves.  To wit:

H.R. 6162: Coin Modernization, Oversight, and Continuity Act of 2010

111th Congress 2009- 2010

To provide research and development authority for alternative coinage materials to the Secretary of the Treasury, increase congressional oversight over coin production, and ensure the continuity of certain numismatic items.  Status: Signed by the President

Even such a staunch Keynesian as Keynes himself said, “There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency.” Adulterating our mintage, however, is small potatoes compared to the abuse perpetrated upon the once sound dollar by the charlatans entrusted with its stewardship.  The venerable greenback has lost 96% of its value since the creation of the so-called Federal Reserve system (a consortium of banks which are not federal and have no reserves).  A wise saver would have been better served over the years by hoarding tuna fish.  The modern dollar, stripped of its convertibility, is nothing more than a political promissory note, one which we are ordered by law to accept, despite the fact that the promises of politicians are never worth even the cheap paper on which they’re printed.

Our “legal tender” has been a convenient illusion since 1971, a bit of showy legerdemain, like the mangy rabbit a carnival magician pulls from a previously empty hat.  The primary difference is that when times get tough, you can always eat the rabbit.

Original Post:  Be Sure You’re Right, Then Go Ahead

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The US is Bankrupt

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“The dirty little secret is: the world has no money and the emperor has no clothes.”

The United States is Insolvent. The United States is bankrupt. We are witnessing before our very eyes the death spiral of the modern day nation state. And an entire party in America, the engine that drives the world, keeps on insisting that we raise taxes, regulate businesses, spend more taxpayer money, and spend even more taxpayer money that it doesn’t even have.

The phrase “The Emperor has no clothes” comes from “The Emperor’s New Clothes“, a short tale by Hans Christian Andersen. In it, an Emperor who cares for nothing but his wardrobe hires two weavers who promise him the finest suit of clothes from a fabric invisible to anyone who is unfit for his position or “just hopelessly stupid”. The Emperor cannot see the cloth himself, but pretends that he can for fear of appearing unfit for his position or stupid; his ministers do the same. When the swindlers report that the suit is finished, they dress him in mime and the Emperor then marches in procession before his subjects. A child in the crowd calls out that the Emperor is wearing nothing at all and the cry is taken up by others. The Emperor cringes, suspecting the assertion is true, but holds himself up proudly and continues the procession.

In America, we have people (almost all Democrats, some moderate Republicans, and all the idiots who vote for them) who care for nothing but a larger and larger government. They have listened to fools like Keynes and Marx and Stalin and Mao who pushed largely discredited theories and adopted the policies that these people suggested. And things got worse. But they are unable to pull back- they are already intellectually committed to the charade, to the idea that massive government run everything will solve all the problems of the world, and as things get worse (the unemployment rate went UP last month again), all they can do is keep pretending. Everyone is invested in the great lie, the great charade, the great myth, and the as the deficits go up and the debt piles up, everyone simply pretends that it is invisible. But, it is a lie. Debt and deficits matter. Government borrowing and spending crowds out private spending and borrowing. Government charity crowds out private charity. And government is inefficient and uses force to do what it does.

The Democrats may keep shrilly shouting, and keep proudly marching, but they know- they know in their boots that that the United States has been driven to bankruptcy by their ideas, by their policies, by them. They are unable to go back, and are unable to reform- reform or pulling back will be like looking down and seeing how naked they really are. No, the only open is to march faster ahead, and pretend like debt and deficits don’t matter, that they aren’t bankrupting our nation and our children’s nation and our grandchildren’s nation, that they aren’t destroying the moral fabric of our society, that they aren’t making the quality of life less, that they aren’t making people feel less and less satisfied about the direction of our nation. There is no going back now, and they know it.

Do you?

Original Post: A Conservative Teacher

Image Credit: DavidPutmanLive

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