The WALTHER REPORT
By Tony Walther
I think our economy is fundamentally unsound and what we are doing now, the bailouts and what amounts to a partial nationalization or socialization of the economy by our government, will only act as a band-aid or a pill that at best will temporarily mask the symptoms of what ails us.
Admittedly I know little of economics, but like most of us, it has been so much in the news these past several weeks and in so much detail, I feel like after all these years I really do understand some of the fundamentals.
Before I go any further, I would suggest reading a piece by Harvard lecturer and economist and Libertarian Jeffrey Miron, now posted on CNN Politics.com. While I have never thoroughly bought into libertarianism, I think that they seem to be the only true conservatives (and they are liberal on social issues, although not government involvement in social issues).
Back to my thoughts: I will wander here, as I sometimes do. But last night while I was trying to read a novel, I had the TV on low and caught a portion of some finance commentators from Britain, I believe. They read an e-mail from someone who complained about the bailouts and also noted that he began his career as a gofer for some financial firm in 1969 at $129 (American) per week. “Now these guys come out of college and think they should start at $200,000 per year.”
Wandering still: I note that Barack Obama has the political guts or maybe savvy to concede in his stump speech that although a lot of our problems are caused by greed and malfeasance on Wall Street, there is also blame to those on Main Street, so to speak, who knew they were getting in over their heads and did it anyway. I think he is being honest there and is also trying to appeal to the centrists, much as I believe Bill Clinton often did. I recall that at one time during his presidency Clinton was referred to as a centrist or maybe even a slightly conservative or “new” Democrat.
Whatever, he supposedly balanced the budget and left office with a surplus. Actually I think that is a lot of accounting trickery that both the major parties engage in, such as when they propose new spending, then cut that proposed new spending slightly and claim they have reduced government spending. This charade is aided and abetted by the news media, which in some cases does not understand what is going on and in others just settles for it because to do otherwise takes too many paragraphs of explanation.
All that aside, Clinton was aided by a robust economy, the Dot Com bubble, as I recall, was a big part of it. But under Clinton the federal budget was balanced (in governmentspeak anyway) and Welfare reform was enacted, something you would have expected Republicans to do.
Bush came into office promising to keep taxes low (especially for folks who could most afford to pay them in the first place) and to loosen government control on free enterprise. He now prepares to leave office while presiding over the biggest socialization of government since Franklin Delano Roosevelt (maybe bigger).
It seems that a lot of the laissez faire free enterprise folks, to include George W., don’t have the courage of their convictions. To be sure, this bailout and nationalization stuff has caused a split in the GOP, which will in part to be blamed for John McCain losing the election, as he at this time seems destined to do. I still think he could win if the stock market were to stay up and gasoline prices kept falling, and if there were to be some attack on the nation or if as I read in another blog that the Bush Administration is able to announce that Osama Bin Laden has been caught. Now this does not make sense. But the voting record of the American electorate is often driven by fear and emotion. This time around it does seem,though, that folks – the Palin contingent aside – seem to be looking at things more thoughtfully and more people are taking part.
What I meant to say in this blog and did not get around to, is that our economy is fundamentally unsound because we (as a nation) have spent too much time consuming and not enough time making. When we get back to the making, which we are quite capable of doing, conditions will improve greatly, I feel. When we get back to investing in our own nation and not industry elsewhere and not in nation building in the Middle East, things will turn around.
Still wandering, but I fear that all of this government infusion into the economy is going to lead to wild inflation. I just heard an economic pundit on TV say that he thinks we are in danger of going into something worse than the Great Depression. We’ll have high unemployment but unlike the Great Depression, we’ll also have inflation.
Wouldn’t it have been better to let the investment banks and other banks fail and be replaced by new bankers who would operate like the bankers of old, prudently?
And finally, I want to jump to the subject of war. In all of this economic upheaval we have forgotten about the wars we are fighting.
Unlike Vietnam (something a couple of generations now have no memory of), there is no draft and the numbers of casualties and troops involved are much smaller (but no less important). But people are dying and being gravely wounded and none of us really know what for, beyond the jingoistic phrases of “fighting terror” or “fighting for freedom”, that have no thought behind them.
I want to mention this because I was thinking about a boyhood acquaintance that dates back to first through fifth grade. He had a stutter, and beyond that I can only describe him as the typical all-American boy. He probably did not do well in school (I don’t know. Our family moved after fifth grade). I recall going over to his house and a bunch of us kids playing on the slip and slide he had just got. I often think back to those kids because it was a time when we were all so happy, free and easy, with no responsibilities (at least I didn’t have any).
I had just got through entertaining my youngest daughter with my memories of that kid who stuttered (not about his stutter, just the fun) and went back into the house to go on the computer. Quite by chance I ran across his name. He died as a Marine in Vietnam from enemy fire.
None of us knew what that war was all about either, except something about fighting for the cause of freedom, and yet no one was freed, except from life on earth.