Daniel Hannan Takes America by Storm

Mr. Hannon talks about some familiar themes that are being played out right here in this country. Speaking of the absurdity of replacing public sector jobs as a compensating mechanism for private sector job loss he says, “…you cannot carry on forever squeezing the productive part of the economy in order to fund an engorgement of the unproductive. You cannot spend your way out of recession or borrow your way out of debt.”

On the Glenn Beck show Daniel Hanan points to the destructive forces that are unleashed when Government inserts its regulatory muscles into the free markets saying the bank bailouts, the nationalizations, the subsidies, act to make things worse.

About the issue of government created jobs he makes the point that they aren’t typical public sector jobs in the traditional sense like a policemen or firemen, rather they are liaison officers, outreach workers, or racism awareness counselors. Maybe here in America we can add to that list community organizer.

The most significant point here, showing the deception behind the scenes, is that these jobs are created to get folks to vote for the party who created them. This is what FDR did with organized labor and the many other special interest groups he created who benefited from his administration. Same thing is happening today with wealth redistribution policies.

In another interview, on the Sean Hannity show, Hannon said everybody, except politicians, understands that when you are in debt you spend less. Hannon also quoted Milton Friedman “There is only two kinds of money in this world. There is my money and your money.”

Milton Freedmen actually said, “"Nobody spends somebody else's money as carefully as he spends his own. Nobody uses somebody else's resources as carefully as he uses his own. So if you want efficiency and effectiveness, if you want knowledge to be properly utilized, you have to do it through the means of private property."

Causality

Government interventions into the free markets, by artificial manipulation, is what caused the Great depression. It was war debt, high tariffs, and failed monetary regulation that caused the recession of the late 1920’s. It was government spending and regulatory controls and anti-business policies of the FDR’s administration that deepened and prolonged the Great Depression.

The recession of the late 70’s early 80’s was started by LBJ’s deficit spending to fund the Vietnam War which brought about rampant inflation. Jimmy Carter mismanaged the economy egregiously by increasing taxation and regulation stifling the economy even further. The unemployment rate was higher then than it is now. By 1980, the "misery index"—unemployment plus inflation –hit over 20 percent for the first time since World War II. It was Reagan’s supply-side tax cuts that allowed entrepreneurs to invest and increase productivity. Reagan also slashed regulations, freeing the entrepreneurial spirit of American business ending the recession.

Today’s crisis can be traced directly back to the easy money policies of the Fed and anti-credit discrimination regulations placed on lenders by the government.

Instead of looking at successful models as a guide to economic recovery the government keeps repeating the mistakes of the past by insisting on following the same failed methods.

What Mr. Hannon is getting at is, the best way to deal with crisis is to get back to the fundamentals of how government is suppose to work; leaving the people alone to make their own decisions and deregulate allowing an atmosphere where the sprit of entrepreneurialship can thrive.