Capitalism’s Sustainability

Chart shows, by state, how many workers would lose their right to a private vote on union membership.

Chart shows, by state, how many workers would lose their right to a private vote on union membership.

By Glen Meakem
Originally published in the Pittsburgh Tribune Review
October 18, 2009

One year ago, the United States economy was suffering through the most severe recession and financial crisis in a generation. Credit had dried up, the economic output was shrinking by 5%, confidence was shaken and the voices of the “liberal”, “progressive” left were quick to hail the end of capitalism. During the height of the crisis, then candidate Obama said, “What we’ve seen the last few days is nothing less than the final verdict on an economic philosophy that has completely failed.”After the collapse of Lehman Brothers, the U.S. Government, under President George W. Bush, stepped in with the $700 billion Troubled Asset Relief Program (TARP). In addition, the Federal Reserve under Ben Bernanke increased the money supply by pumping over $1 trillion dollars into the economy through the banking system. History will determine whether or not these actions were necessary, but the facts are that the government took dramatic and unprecedented action under President Bush to address the financial crisis.

In February, under President Barack Obama, the government passed a $787 billion fiscal stimulus plan which terminated the bipartisan welfare reform of the 1990s, expanded social programs, and paid for new infrastructure–including 9,000 new pork barrel projects. Referring to this huge expansion of government programs and spending, President Obama’s Chief of Staff, Rom Emmanuel, said, “We can’t let a good crisis go to waste.” President Obama explained the supposed Keynesian multiplier effect, saying “What do you think a stimulus is? Seriously, it’s spending! That’s the whole point.” The new President promised the American people that with his stimulus plan in place, the unemployment rate would not rise above 7.9%.

Last winter, Obama and leading Democrats also said that recovery would require new government supervision of our medical care system and major new regulations on financial markets. They also “fast-tracked” the effort to pass the Orwellian named “Employee Free Choice Act” (also known as “Card Check”), which would have removed every American’s right to a secret ballot in union organizing elections. And they sought to introduce a major new tax on and assert control over all energy use in our economy through a new “Cap and Trade” system for carbon emissions.

But a funny thing happened in Washington on March 9th. Former Republican, now Democrat Senator Arlen Specter, announced that he would not support Card Check. With the loss of “moderate” support in the Senate, it became clear that the “liberal/progressive” economic agenda of Barack Obama and the Democratic Party would not sail through Congress. And that day, the stock market began its historic recovery rally. With unemployment now at 9.8%, it is clear that the President’s fiscal stimulus plan is not working as planned. And none of the President’s left-wing agenda is in place–no Card Check, no Cap and Trade, no Health Care Reform, and no strict new regulations of the financial industry. And yet the economy is quickly following the predictions of the financial markets and is springing rapidly into recovery.

According to the left-wing Saturday Night Live, our new President has accomplished “jack and squat” on his agenda (see video below). And yet, our economy is rebounding. How could this be? Could it be that capitalism is much more sustainable than Barack Obama, Nancy Pelosi, Harry Reid, Barney Frank and other Democratic Party leaders thought? Could it be that 200 million American adults making their own separate free decisions in their own individual interests is better, faster, and fairer than any decision our government makes politically?

The central intellectual problem of the American Revolutionary era was how to govern large, increasingly complex societies in a way that maximized individual liberty, overall security, and economic innovation and growth. John Locke, Adam Smith and America’s founders including Washington, Adams, Jefferson, Madison and Hamilton got it right and produced liberty, security, and economic growth, as well as previously unthinkable equality due to the creation by capitalism of a majority middle class. Yes, the continuation of slavery was a stain on the founding of America. And, it took almost one hundred years and a bloody Civil War to eliminate it - followed by 100 more years of social struggle to establish legal equality. But the painful historic issue of American slavery does not obscure the fact that constitutional democracy and individual liberty coupled with capitalism have proven to be the most effective way to run a modern society. America’s founders got it right.

By contrast, the socialist thinkers of recent centuries, including Rousseau, Marx, Engels, Lenin, Keynes, Hitler, Mao, Kim Il Sung, and Pol Pot, got it wrong. In all of their separate flavors of socialism and communism, they believed that government had to act for people and enforce collective decisions upon people. This led uniformly to misery and in most cases mass atrocity and death.

Today, the U.S. economy is growing again because of lower energy costs, production of goods to replenish inventories, low interest rates, and growth in other countries, especially China. This is happening not because of but in spite of Obama’s left-wing agenda.

If he wants to be recognized by history as a successful President, and if the Democratic Party wants to remain relevant, Barack Obama should abandon his leftist ways and recognize that capitalism works and is sustainable, and individual freedom is our birthright as Americans. A limited government needs to stay out of our way and leave us alone.

Video: SNL skit provides checklist on President Obama’s accomplishments

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