IS THERE ANY LIMIT???

Leonard Melman

 

 

Note:  For readers not familiar with the concept of our “Melmania” section, this is where your editor can take any subject and develop arguments regarding some ultimate conclusions.  Since some of those conclusions might sound extremely radical, the name of “Melmania” seems appropriate.

 

 

February 4, 2009

 

Anyone who doubts that a cosmic shift is taking place within America, a shift whose effects will likely be felt around the world, had better look at the news headlines which have been accumulating during the past several months.

1. The American government has been undertaking to stimulate their economy on a scale never before contemplated.

2. The government has decided that since it is bailing out companies, it now has the right to take over those companies, or dictate policies such as stating limits to management's salaries if they are going to accept federal dollars.  That is unprecedented in American history.

3. We are finding the scale of "stimulation" taking place in amounts and directions never before contemplated.  Everyone who believes they have a chance to be on the receiving end of any portion of the flood of government stimulation money is putting forth proposals without end and without limits.  (For examples, see our MM of February 4, 2009)

4. There are non-profit organizations linked to failed nominee Tom Daschle, that are spreading cash around Washington like it is going out of style and there is even talk of outright protectionist "Buy American" legislation from the Obama Administration.  This could lead to trade wars which have been anathema to America since the Depression.

5. There are proposals to pay out vast sums to bail out homeowners.

6. There are proposals to pay out vast sums to allow tax breaks for car buyers.

7. There are vast sums of money being allocated to stop the layoffs of teachers as states and municipalities run short of money.

8. There are proposals to fund huge low-income housing developments.

9. A bill was just passed, and is about to be enacted into law after signing by President Obama, which will massively expand the government's intrusion into America's medical system with the inclusion of millions of children under the government's protective wings.

10. And, of course, we are witnessing America's continually expanding bailout of the entire financial system in steadily growing amounts which now could reach as high as ten trillion dollars. 

 

One can only wonder why anyone will feel the obligation to pay for anything at all, least of all their home and auto loans, if the government stands ready to bail them out at every turn.  And if no one will feel that they must pay their payments on home mortgages or auto loans, why would any lender ever undertake to advance funds for such purposes - unless the government chose to underwrite those loans themselves? 

 

The hint is that such personal bailout moves are an important step toward increasing government controls where 43 Presidents and more than 100 Congresses have never dared to go before!

 

How is any of this consistent with an America which has a two-hundred-twenty year history of free markets and limited government interference, concepts which brought the highest standard of living the world has ever seen - and maintained it for decade after decade after decade?  What have any of the developments noted above got to do with America's historic dedication to free enterprise, sound money, individual liberty and limited government?

 

The answer is "nothing at all."  America is turning its back on what made it great, perhaps the greatest of all nations in which to live, and is now moving toward a completely new direction of greater government interference and domination - and one can only wonder about the eventual consequences.

 

That is my personal opinion.

 

 

Leonard Melman