The Future–Capitalism or Central Planning

There is no question that capitalism as an economic system is under assault at the present time.  Because of the turmoil and downturn some are pushing hard for an agenda that would diminish the power and influence of private enterprise and entreprenuership and replace it with expanded government control over the decisions, marketing, policies and profits of private business.  We need look no further for the proof of this than the Big Three.  Chrysler is already in a Chapter 11 proceeding and Government, Inc. is its creditor, owner, regulator and “management”.  I know there is no formal government official yet on the board but there is no doubt who is in charge of Chrysler and its future.  The Unions will be the largest single owner as a result of its Plan of Reorganization and that matches the wishes of Government, Inc.  The government has now announced its new plans for mileage standards which will dictate the type and style of vehicle that Chrysler can build.  That decision is not market driven or consumer driven but is powered by an envoirnmental lobby within the new administration.    GM will now be known as Government Motors.  Who will want to buy a car from them or Chrysler?  The Chrysler scenario is only one example of this process that is expanding daily.  The banks are in the bag; the insurance companies are going to get TARP money and we know what that means; the private equity funds are soon to be tightly regulated; and Government, Inc. is using the printing press and debt to “solve” our debt problem.  Lastly, the very bedrock of any modern industrial and developed nation, energy, is going to be under the thumb of government through Cap and Trade and EPA regulations.  Without abundant energy we are doomed to very slow growth and restricted advances in all the sciences and our standard of living.  Soon we will be having the same standard of living as Haiti but we will sure have clear skies.  Those donkeys and mules don’t pollute as much as a SUV.  All of this is emanating out of Washington rather than the board rooms and small business shops across the land.  Everyone is having to move in lockstep to the grand vision of the pooh-bahs of brillance in Washington.

Is this the way to go and is this the way that the fastest growing and most progressive economies in the world are going?   Only this week India wrapped up its national elections.  The “right” won there, big time.  India has been on a tear lately and clearly enjoys the benefits of turning loose the entrepreneurial spirit of its people.  The new government there will make an even bigger effort to encourage development and innovation and business enterprise.  They aren’t going green, they are going free enterprise.  Many believe with good reason that the BRIC nations (Brazil, Russia, India and China) are going to be the leaders of the 21st century in economic growth and improved living standards for their people.  Are they turning to more central planning or less?  The Chinese were notorious of decades for tightly controlling all aspects of their people and their economy.  They and the Soviets were infamous for those 5 Year Plans they announced every five years.  They outlined the exact targets and quotas and goals for every segment of their industrial and service entities.  We all know where that got them.  They have turned to greater freedom for their business entities and lower tax burdens and the results are quite obvious.  The Chinese now buy as many new cars each year as the US.  We are going back to the future with Government, Inc. grabbing every rein on the team.  

The Californians yesterday voted down the budget proposals that called for higher taxes on just about everything.   Maybe there were more Tea Parties out there than the main stream media reported.  Only a couple of days ago we wrote about how California has been perceived as the leader of the US in social and economic and envoirnmental policies and agendas.  I don’t believe all the California liberals and even moderates went to sleep on this vote, they were out voted.  Perhaps that vote was the tipping point for Californians and they want government expansion checked and greater business freedom and lower, not higher taxes.  There may be other interpretations of the vote but the overall message was clear–the government taxes too much, spends too much and regulates too much.  I wonder if the big increase in the price of new cars under the Obama mileage proposals if put to a vote in California would pass.   Would the voters like to raise new money for state operations by allowing oil and gas exploration and collect the delay rentals and royalties from that development?   If indeed California is the engine on the train then  the politicians across the land better listen to what that vote told them.  It sure wasn’t only Republicans that voted no.  To reject the government growth it took a broad cross section of the population.

Everyone hollers that we are saddling our kids and grandkids with a huge debt because of the enormity of the spending, borrowing and printing of money that Government, Inc is doing now.  I don’t agree that it is being deferred that long.  I think WE will have to deal with that debt because it is huge and our credit is waning by the month and our dollar will weaken further.  But if we are putting off the debt problem for our kids then why not do the same thing with the alleged Global Warming issue.  Let them figure it out.  I have tremendous optimism about the ability of our people to solve any problem if they are free to pursue their own interest, dreams and passions without interference by the Government.  As is always the case it is government that is the problem not the free market.   Government doesn’t solve anything, it only complicates matters and snips away a little more freedom with every law it passes.  The science and technology will come to utilize non fossil fuel energy sources one day–within decades likely and the alleged problem with be fixed. 


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Filed under business, Economics, Environment, Global Warming, government

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