Home
In this issue
Sept. 3, 2010
Rivy Poupko Kletenik: How to beat those down-home High Holiday blues
Caroline B. Glick: The new Netanyahu?
Mona Charen : Why These Talks Are Doomed
Sept. 2, 2010
John Rosemond: What do today's children seriously lack that children in the 1950s and before enjoyed in abundance?
Evan Gahr: Seems Bloomberg truly CAIRs
Thomas H. Maugh II: Diabetes drug found to reduce cancer risk
Sept. 1, 2010
Michael B. Oren: Reason for optimism in Mideast talks
Nat Hentoff: What hath the Ground Zero imam wrought?
August 31, 2010
Mark Johnson: Scientists unveil new step in less-controversial stem-cell efforts
Frank J. Gaffney, Jr.: Not a Muslim, but there's certainly legitimate room for concern over Obama's recent repeated actions
August 30, 2010
Peter J. Sampson and Jean Rimbach: Tenants don't see imam as 'healer'
Andrew Silow-Carroll: Fly the friendly skies --- or go to Israel
August 27, 2010
David Hazony: The Mystery of Goodness
Caroline B. Glick: Accepting the unacceptable
August 26, 2010
John Rosemond: ‘Fixing’ Son's Shyness
George Will: The Mideast mirage
Paul Greenberg: Rare Sighting: Common Sense from the Bench
August 25, 2010
Ariella Marcus: New prayer book uplifts as it enlightens
Nat Hentoff: Am I also a bigot? Pols clueless on Ground Zero mosque
Sarah Tully: Muslim employee is taken off Disney's schedule after deciding she no longer wants to wear uniform
August 24, 2010
Steven Emerson: A 'moderate Muslim' exposed
Cal Thomas: Pointless Talks
Wesley Pruden: The 'Zionist plot' to build a mosque
August 23, 2010
The Jewish Ethicist by Rabbi Dr. Asher Meir : Reclaiming what's yours through deception
George Will: The 'two-state' delusion
August 20, 2010
Rabbi Dov Fischer on his divorce and responsibility
Caroline B. Glick: Dusk in Iraq
August 19, 2010
Jeff Jacoby: The 'disengagement' disaster, five years on
George Will: Skip the lectures on Israel's 'risks for peace'
Matt Flegenheimer: Hypercompetitive overachievers bet on their own academic success
August 18, 2010
Suzanne Fields: The New Dance on a Pinhead
Richard Z. Chesnoff: A Film Unfinished: The Warsaw Ghetto As Seen Through Nazi Eyes
Lee Margulies: Dr. Laura to leave radio show amid controversy

(INCLUDES VIDEO)

August 17, 2010
Dennis Prager: Same-Sex Marriage and the Insignificance of Men and Women
Caroline B. Glick: Standing on a landmine
Frank J. Gaffney, Jr.: Obama's 'Teachable' Shariah Moment
August 16, 2010
Arnold Ahlert: You've Lost America, Mr. President
George Will: Israel will not be a 'perfect victim'
August 13, 2010
Rabbi Abraham J. Twerski: What does 'doing the right thing' entail?
Caroline B. Glick: Guide to the Perplexed
Jon Stewart: Charlie Rangel's War (VIDEO!)
August 12, 2010
George Will: Israel's anti-Obama
Larry Elder: Is Obama Winning the Hearts and Minds of the Arab and Muslim World?
August 11, 2010
Rabbi Hillel Goldberg: How to talk to a neo-Nazi (POWERFUL!)
Rene Stutzman: Muslim-turned-'infidel', now 18, is ready to begin life anew
August 10, 2010
Frank J. Gaffney, Jr.: Coming to grips with shariah

Jewish World Review Jan. 27, 2009 / 2 Shevat 5769

Where is free market economics when we need it most?

By Mona Charen


Printer Friendly Version
Email this article

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.

Every weekday JewishWorldReview.com publishes what many in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here.


Comment on JWR contributor Mona Charen's column by clicking here.

Mona Charen Archives

© 2006, Creators Syndicate

Insight (Our Columnists)

 Arnold Ahlert
 Mitch Albom
 Barbara Amiel
 Michael Barone
 Tony Blankley
 Andy Borowitz
 David Broder
 Stratfor Briefing
 Mona Charen
 Linda Chavez
 Richard Z. Chesnoff
 Ann Coulter
 Greg Crosby
 Alan Douglas
 Larry Elder
 Suzanne Fields
 John Fund
 Frank J. Gaffney
 Lloyd Garver
 Michael Gerson
 Jonah Goldberg
 Julia Gorin
 Jonathan Gurwitz
 Paul Greenberg
 Lewis Grossberger
 Victor Davis Hanson
 Betsy Hart
 Nat Hentoff
 Marybeth Hicks
 David Horowitz
 Cheri Jacobus
 Jeff Jacoby
 Paul Johnson
 Jack Kelly
 Ed Koch
 Ch. Krauthammer
 Michael Ledeen
 John Leo
 David Limbaugh
 Kathryn Lopez
 Rich Lowry
 Michelle Malkin
 Jackie Mason
 Dick Morris
 Jim Mullen
 Bill O'Reilly
 Kathleen Parker
 Mark Patinkin
 Dennis Prager
 Wesley Pruden
 Tom Purcell
 Jonathan Rauch
 Robert Robb
 Cokie & Steve Roberts
 Heather Robinson
 Pat Sajak
 Debra J. Saunders
 Culture Shlock
 Michael Smerconish
 Thomas Sowell
 Mark Steyn
 John Stossel
 Cal Thomas
 Bob Tyrrell
 Diana West
 Dave Weinbaum
 George Will
 Walter Williams
 Byron York
 Mort Zuckerman

'Toons
 Robert Arial
 Chuck Asay
 Baloo
 Chip Bok
 Dry Bones
  Lisa Benson
 John Branch
 Gary Brookins
 John Cole
 J. D. Crowe
 John Deering
 Brian Duffy
 Everything's Relative
 Mallard Fillmore
 Jake Fuller
 Bob Gorrel
 Joe Heller
 David Hitch
 Jerry Holber
 Steve Kelley
 Jeff Koterba
 Dick Locher
 Chan Lowe
 Ranan R. Lurie
 Jimmy Margulies
 Rick McKee
 Michael Ramirez
 Kevin Siers
 Jeff Stahler
 Ed Stein
 Danna Summers
 John Trever
 Gary Varvel
 Kirk Walters

Lifestyles
 Lori Borgman
 Fixit
 Dr. Peter Gott
 GET A JOB! by Marty Nemko
 Richard Lederer
 Tech Maven
 Every Monday Matters
 Nutrition Myths
 Bookmark These
 Bruce Williams
 How Stuff Works