In Mitch Feierstein’s blog written for the Huff Post Business internet website and posted June 8, 2012, concludes his article with these paragraphs: “And it all amounts to something very simple. Capitalism is simple. You let winners win. You let losers lose. You regulate the whole show to the minimum degree realistically necessary to protect workers, consumers and citizens.
Those simple rules have been forgotten. We have a capitalism, which – as far as finance is concerned – has no losers. You’ve bought some stupid assets? Don’t worry: Uncle Sam will bail you out. The economy’s looking weak? Don’t worry: Ben Bernanke will roll those printing presses. Your bank is badly run and insolvent: hey, don’t worry, your friend the Treasury Secretary is bound to have a neat solution.
Capitalism without bankruptcy is like Catholicism without hell. And right now, we need some bankruptcies.”
Mitch’s theme that politicians and bureaucrats are ruining the financial outlook of our nation rants on thoughts financially sound but not really new. I doubt very few would disagree, other than the politicians and bureaucrats, that they are indeed, going to be the ruination of our great nation, one that is now teetering on the brink of world economic collapse and economic hell.
A brief look back in history should let all know that our economic decline began in the 1980s under our King, Ronald Reagan. It was during his reign as President that less government became better; economics would trickle down from the rich; and Greenspan, the Chairman of the Federal Reserve since the beginning of time, unleashed a no government regulation assault on the American dollar and stock markets, all in the name of free enterprise and capitalism, of course.
Young Feierstein’s view that capitalists should be left to their demise in the graves of bankruptcies may be justified drama, but in reality, our politicians have gone too far in their corrupt and convoluted ways at the trough of lobbyists to make changes beneficial or even possible, under the existing system of polity.
Instead, what is needed to overcome the economic deluge of bankruptcies we now face around the world is not to let the course adjust itself, as Greenspan once suggested about finances and now Feierstein suggests about bankruptcies. Instead, the answer to our world economic woes is to completely change how we do economic business in the world, and the United States should lead the rest of the world in this old economic direction.
We can do that best by returning to our roots to whom we use to be – free individuals that invested in the free enterprise system. We need to return to our Founding Father’s concepts that we are a nation of individuals collectively agreeing to govern ourselves through regulations that are indeed designed to regulate to the minimum degree, and without politicians.
That means we must return to direct use taxes and eliminate income taxes where politicians and bureaucrats get to determine who is and is not the elite. There should be NO exemptions from paying the taxes that provide the infrastructure for free enterprise and commerce.
Politicians and bureaucrats should return to the status of servants with limited terms of service. Lobbyists should be legally barred from any kind of financial dealings with bureaucrats or politicians.
That is what I call regulating to the minimum degree, and without politicians.
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