The Laws of Obamanomics a.k.a Interventionism
December 2, 2009 · Posted in Interventionism
The Examiner writes in a book review Obamanomics defined: Big Government in service of Big Business:
The Laws of Obamanomics
Underlying Obamanomics are some basic economic facts and political realities. These are the Four Laws of Obamanomics, paired below with some of the lobbying strategies that exploit these laws.
1) During a legislative debate, whichever business has the best lobbyists is most likely to win the most favorable small print. Similarly, once a bill has passed, the business with the best lawyers and lobbyists will best be able to craft the regulations and learn how to game them. A big business, counting on this fact while lobbying for more government spending or control, is employing The Inside Game.
2) Regulation adds to overhead, and higher overhead crowds out smaller competitors and prevents startups from entering the industry. When corporations, knowing this, lobby for more regulation of their industry, I call this the Overhead Smash.
3) Bigger companies are often saddled by inertia, meaning robust competition is a threat. Adopting regulations that stultify the economy is the equivalent of raising the basketball hoop to twenty feet at half-time: it protects the lead of whichever team is ahead. When Big Business seeks to stultify the economy to hold back smaller competitors, I call it Gumming the Works.
4) Government regulation grants an air of legitimacy to businesses, boosting consumer confidence, often beyond what is warranted. This is The Confidence Game.
While I agree that all these laws do accurately describe the current US economic policy under the current president, I ask: How did those laws differ under Bush, or under Clinton for that matter, or under Bush Sr., or under Reagan??
People have to realize: What is outlined above does not outline some new phenomenon. These are, simply put, the laws of interventionism, the system that has dominated the entire past century. All the problems we are facing today can be traced back to it, all the cures prescribed to fix our problems are just more of very things that caused our problems.
It is a system under which, during all the bogus back and forth, all the talk in the media from left or from right, all the discussions about tax hikes by 4% or by 5%, about whether or not we should send 30,000 or 40,000 hitmen into a foreign country, about whether we should spend $5 billion or $7 billion in yet another foreign aid bill, about whether this or that government institution should oversee banks, or whether centrally decreed interest rates should be .25 or .5 percent, one thing has remained consistent and uncontested by the blind public for decades: the growth of government.