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Saturday, May 22, 2010

The Appearance of Properity

I was over at PJTV this morning watching the plethora of videos uploaded last night. Allen Barton's Friday show had a guy on there whose name I was familiar with, but I had not really heard any ideas put forth by him on any subject. His name is Alex Epstein. His hair is way snappier than it was on his bio page, and the kid actually has some cogent ideas on capitalism. He brought up the subject of the appearance of prosperity that is needed by crony-capitalism for that machine to work.

He was asked, by Allen Barton, about the unintended consequences of bailing out Greece from their fiscal profligacy. He said that the consequences were very much intended. He and I agree with the idea that Progressive Liberals mostly know exactly what they are doing, if only hiding from their own subconscious while doing it.

In the dot com boom and the housing boom the government needed to create the appearance that we were all prospering so that no one would panic and there would be no runs on the bank. In the housing boom Freddy Mac and Fanny Mae literally GAVE money to people they knew A) didn't deserve the money and B) would never, ever pay it back. This gave off the effect that we were way more prosperous than we were and it is what is leading the the economic free-fall we are all headed for.

So does this mean that we need more regulation? No, as Alex Epstein stated in Friday's show, more regulation only leads to finding loopholes to get out of doing the right thing. And this evades the real intention of what the regulation was supposed to control. More government intervention has never, ever helped in the entire recorded history of man, so I don't know why people keep thinking that this time it really will work. Yeah, you keep on thinkin' that punkin.

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