Posted by
DecoNservAtiVE on Tuesday, January 27, 2009 11:54:47 AM
America as well as the rest of the world is going through some tough times these days. The economy is in the tank and our government is expanding. The news media is quick to point to a recession, others are screaming about this being another Great Depression. Barack Obama suggests that only government can solve our problems. Ironically, when worse problems faced a former President, his quote was "In this present crisis, government is not the solution to our problem; government is the problem." We must step back from the problems and look at the big picture. Much of the present crisis in 2009 has been created by government through it's back room dealings with the financial industry and unions and its total domination over the market. We live in a free market economy which does not respond well to forced government intervention. Another major factor in the recent economic slowdown comes from another, less talked about and politcally dangerous area, immigration. In the year 2000 America had a population of roughly 282 million people. Todays Population is over 306 million. That is an 8% increase in total population in less than one decade. The entire world, including China, India and Russia whose populations have traditionally outpaced America, grew by about 10% in the same period. Births during this time period have been roughly on par with the replacement of deaths within America during the same period. What accounts for the majority of the increase is immigration. Millions of immigrants both legal and illegal have flooded our borders since 2000. America, while founded by immigrants, on the premise of allowing all immigrants to begin anew their lives, has reached its critical mass. The flood of immigrants seeking homes and jobs in America spiked so high that the country faced three choices, none of which were desireable.
1.) Round up all immigrants, decide which are legal, which are illegal and how much America could handle at one time and send the rest back to their home countries. This would have been a massive undertaking and would alienate so many millions that it could not be seriously considered as an option.
2.) Close our borders and stop allowing new immigrants into the country until the population growth stabalized and began to decrease. More desireable than the first choice, but still not politcally correct. It would in effect remove America from the world stage and cause anti-American sentiment to be propogated across the globe. This would likely have been one of the best choices out there and may have allowed the market to adjust easier, possibly avoiding this crisis altogether.
3.) Create more infrastructure, lower standards and financial restrictions, mandate excess job creation and print money. Possibly the worst of the choices but the one chosen by the government. The government decided to deal with the population increase by forcing the market to accept the incoming immigrants quickly. They forced banks and lenders to lower standards and increase home salses to buyers who were not previously acceptable. They mandated that companies increase job creation to accomodate the immigration trend immediately and spent billions on creating more infrastructure and government services that would be tapped mainly by immigrants.
And so the market thrived, until it became too much. For years the market showed unprecedented growth as immigrants found prosperity and financial success in America. Jobs were plentiful and credit flowed like water from Niagra Falls. Immigrants both illegal and legal spent their hard earned wages on American goods and services. Business owners were able to continue hiring as people continued buying. Real estate prices soared as the demand for homes grew and grew. America was so accepting that more and more immigrants stormed the borders, north from mexico, west from the Atlantic routes and East/South by way of Canada. Eventually the economy grew so large that it simply burst. Much like a balloon overfilled with water, the economy reached its breaking point. The market simply corrected for the forced changes. It could not keep up with the demand. First the dollar became devalued as the government flailed to try and stem the tide by printing more money. With the printing presses operating at full speed, dollars churning out like water from a fire hose and nothing changing, the US banks were forced to begin restricting credit to cover themselves with the falling dollar and mounting debt. Housing markets began to tank as credit was restricted. The government still printed money even as the credit market was drying up and businesses began to be affected by falling credit. They were unable to keep up with the empty jobs they created to cover government mandates and keep their business profitable. Now we have seen the job cuts. Hundreds of thousands of jobs have been lost in less than one year and millions of lives have been affected.
A crisis that could have been averted by making the difficult choices has been made worse by "quick and decisive action" and the "bold action" that Congress has engaged in to fix the problem the created and refused to stop, threatens to worsen and prolong the current crisis. We must remember what happened after Reagan uttered his famous quote, and then pushed government aside. Double digit inflation was reversed, interest rates as high as 20% shrunk and jobs and government revenues grew dramatically. So to President Obama, our new national leader,
Mr. President,
I must respectfully disagree with you when you say that government is the only solution to this current crisis. Indeed, government is the worst possible solution to this crisis. Please get out of the markets way and allow it to correct, shrink, and rebuild itself at its own pace. Should you decide not to do this, you risk, and will reap, a longer, more painful depression than we have ever seen in the history of the world. One that I am not sure from which we could recover. Now is not the time for Socialism/Nationalism, now is the time for being America. Land of the Free, Home of the Brave and the voice of liberty.