Happy New Year!
It seems to me that if the Obama administration goes through with it’s threat, to go around Congress by enacting reams of regulation, it will be an excellent example for the rest of the World to watch, watch as the US economy crashes and burns.
I have gone on and on about the pernicious nature of regulation in these blogs. Regulation is one of the biggest impediments to a good natural rate of unemployment in an economy. Regulation, by it’s very nature, raises the natural level of unemployment. Economists seem to agree, although economists are like cats, loners and they love to fight each other., that the natural rate of unemployment in the US has reset to around 7%.
Regulation is bad enough, but when it is used to bypass the normal flow of law, it carves divergent channels. Like water will carve a new channel when it is forced out of it’s banks, so too will a means of controlling the public, that is easier for the Elite to use, once discovered, will be used with increasing frequency. A new path to power will have been carved.
When an idea that should be discussed in the marketplace of ideas, is imposed by a small faction instead, it leads to societal convulsions. Look at the historical example of abortion in the US. The Constitutional argument granting the unlimited right was fabricated from whole cloth. Since then the public reaction has grown more negative every year. The blood on the hands of those “Justices” is chilling… I pray for their souls.
In making the pronouncement itself, the administration is announcing it’s repugnance for the Constitutional means of enacting law. When A person breaks the law, it is not because they love the law, it is because they detest the law. Thinking that law an impediment to their best interests they simply ignore that law, until caught and punished, for the violation of the government’s morality. When a private person does it is bad for society, this how much worse the societal damage when the Elite do this.
Reams of regulation also proclaims that the rite role of government is to force societal change. A small cadre of Elite, that have no meaningful interactions with the public at large, (except for the occasional hot dog on the campaign trail), impose their self righteous view of “societal justice“ on us masses of ignoramuses. They believe we the public are stupid, you and I, they believe we don’t actually know what is, in fact, in our best interests, and so it is their imperative to force us to bend to their will.
Lets look at empirical examples of what type of regulation the administration has in store for us…. The administration has regulated to date; Off shore drilling, (wiping from the map thousands of jobs and trillions of dollars of economic growth from future GDP), the banking and investment industry, (lets see how consumer friendly the regulation turns out to be), the health care industry, (fully a third of the US economy will come under direct or nearly direct government oversight and regulation), the free flow of information on the internet, (through net neutrality) the list goes on and on…
All these things will combine to dramatically raise unemployment and drive down economic growth if they actually happen, (most already have). The example is obvious, a road to ruin will be illuminated for the rest of the world to see. A road that, once illuminated, will be eschewed by other nations, for the road to prosperity, the market system encumbered by as little regulation as is possible. Regulation that is strictly enforced even whet it is broken by the Elite themselves.
That, my friends, is the path to prosperity, smart, and minimal regulation on industry. Limiting government influence on the Market would result in more efficient and productive markets. With far less warping of those markets… to insure the profit of corrupt officials.
Not that corrupt officials have a negative effect on an economy… Nor that unlimited power creates corrupt officials…