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February 3, 2012
Edmund Sanders : Israeli official says Iran is creating missile that could reach East Coast of US
Victoria Kim: Immigrant-smuggling ring used black drivers to avoid racial profiling
February 2, 2012
Jim Carney: Wrong number call may have saved her life
Reza Kahlili : Ex-CIA spy in Iran's Revolutionary Guard: What Obama doesn't grasp about striking deals with Tehran
Tina Susman: For woodchuck rescuer, every day is Groundhog Day
February 1, 2012
Brian Bennett: US officials see increasing threat of domestic attack from Iran
Emily Brandon: How to Take Advantage of New 401(k) Fee Disclosures
January 31, 2012
January 30, 2012
Paul Richter and Ramin Mostaghim: Misreading Teheran's limits -- deadly and economically devastating as they may be -- is a risk administration, Europe seem willing to take
Suzanne Bohan: Warning: Nap-deprived tots missing more than sleep, study finds
Meg Handley: Banks Revamping Rewards Programs to Woo Customers
January 27, 2012
Caroline B. Glick: Obama: Of course I intend to prevent a nuclear holocaust . . . in a few months
Yochonon Donn: In liberal New York City, fervently-Orthodox Jews may soon be getting a district to call their own
Jeannine Stein: An inflated ego and thinking you're 'all that' doesn't just make others sick of you, it can make you ill
Katy Hopkins: New budget rules may affect how much money you get for college
January 26, 2012
Ed Koch: To the New York Times, calling for the murder of Jews by those capable of having their incitement taken seriously isn't news
Jeannine Stein: Mental illness struck one in five U.S. adults in 2010: Report
January 25, 2012
Richard Simon: House passes two bills endorsing the use of religious symbols at military memorials
Fred Weir: Putin: Multiethnic Russia cannot survive as a US-style 'melting pot'; must find its own way
Susan Johnston: 5 Sneaky Coupon Strategies Consumers Should Watch Out For
January 24, 2012
Carol Clark: The price of your soul: How your brain decides whether to 'sell out'
Caroline B. Glick: America lost most in 'Arab Spring'. Sadly, many voters still don't grasp the extent
Warren Richey: Drug criminal scores win in GPS ruling from conservative-leaning high court
Erika Bolstad: Black conservatives gather to talk about gaining strength
January 23, 2012
Melissa Dribben: Jewish voters to play a key role in Florida's Republican primary
Jordan Rau: In quest to grow, Catholic hospital system will announce this morning its break from church
Ali Safi: U.S. envoy gives Taliban terms for peace talks
January 19, 2012
January 18, 2012
January 17, 2012
Frank J. Gaffney Jr.: No-kidding red lines: U.S. response to an Iranian nuke may be bluster, but Israel's won't be
David G. Savage: They sued their principals after slandering them online --- now the cases are headed to the Supreme Court
David Francis: Where to Invest in 2012: With stocks expected to rebound, opportunity abounds for investors
January 13, 2012
Ben Lynfield: Israeli lawmakers move to annex Jewish Judea, one museum at a time
Alexia Elejalde-Ruiz: Thriving through touch: Gentle massage helps older people with low mobility improve in mind and body
January 12, 2012
Warren Richey: Landmark Supreme Court ruling a 'resounding win' for religious groups
Warren Richey: Supreme Court says no to new rule on eyewitness testimony
John Fauber : Statins found to raise diabetes risk in postmenopausal women
Katy Hopkins : Consider This Before You Pay for an Online Degree
The Kosher Gourmet by Joseph Erdos: This mushroom and barley soup has an intense -- almost nutty -- flavor that mixes robust with Middle East. It has creaminess without cream
January 11, 2012
Shari Roan: Millions of atrial fibrillation sufferers at risk for devastating, but preventable, stroke
Tom Hussain: Pakistan -- recipient of more than $21 billion in civilian and military aid -- speeds pursuit of Iranian pipeline, defying US
David G. Savage: High court signals it won't be loosening TV's 'indecency' rules
Stephen Ceasar: Oklahoma's Islamic law amendment can't go into effect, court rules
January 10, 2012
Reza Kahlili: From an ex-CIA spy: US must exploit new split in Iran's Revolutionary Guard
Karen Kaplan: Study: Nicotine replacement products ineffective when used in real-life situations
January 9, 2012
Michael Doyle: Put through legal hell over dream home, couple fought back hard --- all the way to Supreme Court
January 6, 2012
January 5, 2012
Tom A. Peter: Taliban talks: In administration's push to negotiate with terrorists, was a key hurdle overlooked?
Pete Spotts: Time cloaking: How scientists opened a hidden gap in time
Karen Kaplan: Teens aren't too old to boost their IQ, study finds
January 4, 2012
Scott Baldauf: Islamist terror group giving Christians living in north Nigeria days to flee
Howard LaFranchi : An accelerating covert war with Iran: Could it spiral into military action?
January 3, 2012
Tom A. Peter: Release several Taliban leaders from Guantanamo Bay; give them headquarters as confidence-building measure?
Elaine Woo: Thomas T. Johnson, L.A. judge who ruled that Holocaust was a fact, dies at 88
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Jewish World Review
Jan. 27, 2009 / 2 Shevat 5769
Where is free market economics when we need it most?
By
Mona Charen
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http://www.JewishWorldReview.com |
"Lending Drops at Big U.S. Banks," reports the front page of the Wall Street Journal. Even those banks that have just received an infusion of $148 billion in taxpayer dollars as part of the TARP saw their loans drop by 1.4 percent between the third and fourth quarters of 2008, the paper reports. The economy seems to be shedding jobs like a dry fir tree losing needles. People speak of a "consensus" that only a huge stimulus plan by government can save us.
Certainly President Obama seems supremely confident that the federal government, in his own capable hands, can tackle everything from job creation to education to global warming. All that is needed is to set aside "stale" partisan arguments and salute smartly.
President Obama was a teenager when some of the smartest liberals in America (dubbed the neoconservatives) were beginning to have doubts about the power of government to do good. Daniel Patrick Moynihan, Irving Kristol, Norman Podhoretz, Nathan Glazer, Aaron Wildavksy, and many others observed the effects of Lyndon Johnson's "Great Society" initiatives and became sobered up. (A few, including Moynihan, returned to the liberal fold but most did not.) They noticed the waste and the ineffectiveness of huge government programs, but above all, they were chastened by the law of unintended consequences that the unforeseen or indirect effects of government policy were usually more damaging and more important than the desired effects. Minimum wage laws are a good example. Intended to help the poor earn a living wage, they instead discouraged hiring of the low-skilled. Rent control was supposed to make it easier for the poor and middle class to afford apartments but wound up making low-cost housing less available.
All of that social learning is well in the past now. President Obama seems to have burst on the scene without ever having grappled with those lessons. Not even Republicans behaved in power as if they believed in free markets. One hates to pile onto President Bush, who did many things right and has received more undeserved calumny than anyone in recent memory, yet it must be said (and has been said before in this column) that President Bush, along with a sloppy and incontinent Republican majority in Congress, managed the feat of discrediting free market economics without ever practicing it. It was the Republicans who passed the Medicare prescription drug bill, and the bloated farm bill, and the transportation pork. This disqualifies most Republicans from challenging the gigantic new trough feeding that is about to begin under the Democrats.
It was, or should have been, frightening news that the United States is now $10.7 trillion in debt, sporting a $1.2 trillion deficit. As Mark Steyn noted, your pocket calculator doesn't have enough spaces to input one trillion dollars. The Democrats' solution is to make our deficit $2 trillion with a "stimulus" package. The Congressional Budget Office (run by Democrats) reports that all talk of "shovel ready" projects notwithstanding only about 25 percent of the new spending in the package would actually be spent by 2010. And it defies common sense to believe that transferring $100 billion from the federal government to the states to help with Medicare reimbursements will stimulate economic activity. Nor will $200 million to rehabilitate the National Mall in Washington, or $500 million to install new bomb detectors at airports, or $400 million to NASA to conduct climate change research (which several other agencies are already studying), and on and on.
We are, not to put too fine a point on it, about to send another trillion dollars of our money into a rat hole. Permanent tax cuts, for individuals and businesses, have been proven to stimulate the economy. They worked under Kennedy and Reagan. But to point this out now is like shouting into a whirlwind.
As Gordon Crovitz and other wise men have pointed out, we got into this mess because government created a housing bubble. Until the bad assets held by banks are cleared and the TARP has clearly failed to do this all of the money shoveling will just prolong the agony. Capitalism prescribes tough medicine for mismanagement. But insolvency, bankruptcy, and recession are all necessary correctives that lay the groundwork for healthy recoveries. The Democrats are trying to avoid the short-term pain. The result will be long-term pain.
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Mona Charen Archives
© 2006, Creators Syndicate
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