Saturday, February 27, 2010
The Way Things Don't Work
Ron Paul has be on MSNBC recently because he is up in the polls as the next Republican presidential hopeful. Unfortunately, while the people like what he says, when it comes to monetary policy and our central bank (which he believes we do not need) Ron Paul does not know what he is talking about. What's new?
In the 21st century, for the United States to close its central bank is unthinkable to me. If you think I am the only one thinking this, ask any economist that understands the role our central bank plays as part of the world financial system. Ron Paul, when it comes to central banking does not understand what his ideas would do to our economy or the world's economy.
I would like to see our central bank concern itself more with the integrity of our dollar and perhaps a little less concerned with economic growth. Economic growth, in my opinion, will happen faster and last longer on a level playing field. What am I talking about when I say "level playing field"? Let me explain.
What is the opposite of socialism? Capitalism? Well, we don't have free market capitalism in America. What is a monopoly? A monopoly is when a group of businesses, or, a single business dominates and controls the price structure of a whole industry. What is anti-trust? Take a look at the health care industry and tell me we have free market capitalism in health care. No, we don't have competition in health care because Congress has made them exempt from anti-trust. A health care provider can legally control more than 50% of the health care business in a state and there is nothing wrong with that - legally.
So, we don't have a level playing field in health care for the consumer, and because of special favors for other industries, we don't have a level playing field for the consumer in a number of other fields as well. What we have is a Government that gives special protection so certain people can make a living, a very good living, on the backs of those with little or no influence. That is the kind of economic system we have in America.
Now the Republican Party has convinced a number of Americans that they need to fear socialism because the Democrats want to make health care available and affordable for more Americans. If more Americans understood how they are being screwed over by the Republican Party, things would change pretty quickly. But, we are a country that looks at polls and we give the microphone to the guy with the ratings, and so we get to hear from a know nothing like Ron Paul.
Some day people will figure this out, but it may be a while.