If every high school student truly learned the laws of supply and demand, and why government wage and price controls are forever destined to create shortages or surpluses, including housing shortages, unemployment, black markets, and more . . .
. . . we'd be in a lot better shape right now.
Ignorance of the laws of economics underlies vast swaths of unwise and self-defeating public policy.
Chart: U.S. Unemployment and the Federal Minimum Wage
Chart: Effects of Rent Control
Trying to forcibly control the price of anything -- from health care to wages to rent -- is about as successful as trying to legislate the value of pi.
You can mandate that pi equals 3 instead of 3.14159 (etc.), but if you try to build anything on the basis of a mandate that pi must always equal 3, you will see collosal failure.
That is what we have been seeing in many countries of the world recently, the United States included: Massive, trillion-dollar collosal failures, all built on economic ignorance.
It’s time to get back on track here folks. There are only twelve more days before this nation goes to the polls to reverse the disastrous economic policies the Democratic Party has designed to promote their wealth distribution lunacy. Unemployment is still running at all time highs. The nation is in so much debt, interest payments will become intolerable. Nancy Pelosi, Harry Reid, Barbara Boxer and the Democrats have been endlessly writing checks, (at the taxpayer’s expense), and they plan on spending until their last day in office.
From a commenter this morning in the Washington Post:
For those who are listening to the liberals propagating the fallacy that everything is “Bush’s Fault”, think about this: January 3rd, 2007 was the day the Democrats took over the Senate and the Congress:
At the time: 1. The DOW Jones closed at 12,621.77 2. The GDP for the previous quarter was 3.5% 3. The Unemployment rate was 4.6% 4. George Bush’s Economic policies SET A RECORD of 52 STRAIGHT MONTHS of JOB CREATION!
Remember the day…
1. January 3rd, 2007 was the day that Barney Frank took over the House Financial Services Committee and Chris Dodd took over the Senate Banking Committee.
2. The economic meltdown that happened 15 months later was in what part of the economy? BANKING AND FINANCIAL SERVICES!
3. Thank Congress for taking us from 13,000 DOW, 3.5 GDP and 4.6% Unemployment to this CRISIS by dumping 5-6 TRILLION Dollars of toxic loans on the economy from YOUR Fannie Mae and Freddie Mac fiasco’s!
(BTW: Bush asked Congress 17 TIMES to stop Fannie & Freddie – starting in 2001, because it was financially risky for the U.S. economy, but no one was listening).
. . . .
It’s time to get back on message. Time to remind every voter to ask themselves, “who’s been in charge of this nation’s spending practices for the past three years”??? Who’s responsible for THIS ECONOMY and the failures of our current leadership?
Obama is fond of claiming that his adversaries drove the economy into a ditch. The cold hard facts show otherwise. The unemployment rate has skyrocketed thanks to the economic uncertainly created by tax-spend-regulate liberal policies. Obama, Pelosi, Reid, and their fellow Democrats (and a few Republicans-in-Name-Only) have spent three solid years digging a financial ditch so deep -- trillions of dollars in new debt deep -- that it will take herculean efforts for America to dig out.
The finance-reform bill Congress is likely to pass this summer won't eliminate the risk of failure for financial firms, Treasury Secretary Tim Geithner says in an interview on Friday's Morning Edition.
But the bill means that, when firms get into trouble in the future, "we won't give them a second chance," he tells NPR's Renee Montagne. "We will dismember them, put them out of existence."
It must be satisfying for the Community-Organizer-in-Chief and his administration to finally have a goal they can put their whole heart and soul into.