Was watching the news today. Seems that Paul Ryan is Mitt Romney's choice as second banana. As I was reading, I came across two interesting comments. One by Candy Crowley on CNN, the other was a story by Walter Shapiro on Yahoo! News. It was almost stark opposites.
Ms. Crowley claims that this pick dooms the Republican ticket to a loss, the quote was "Looks a little bit like some sort of ticket death wish." I just wish I could ask her why? Is it because of her bias against Republicans, or is there something deeper? Paul Ryan is an economics pick. He does not agree with Keynesian Economics that the Democrat Party has endorsed since John Kennedy was President. If you regularly read this blog, Keynesian Economic Theory postulates that the Government, through tax policies, and spending can even out the business cycle. That is, no recessions, but then again, no booms. This is the reason the Democrats are called by some "Tax and Spenders", when the economy starts to heat up, they say Government should tax at a level to cool it off. The Federal Reserve also can cool down a growing economy with interest rates. When the economy starts to go backward, then Government should spend to stimulate the economy. The largest problem I have with this theory is the US GDP is a little over $15 Trillion; even the massive stimulus plan was just $800 billion. $800 billion did little to stimulate anything, it just wasn't enough. In order to provide a stimulus to the economy would it not have to be more than 0.05% of the economy? Seems that to be effective Government would have to spend $4 or $5 Trillion, or about twice the budget which is putting us so deeply into a debt we may never recover from. Point is, Government cannot spend enough to stimulate the economy with out doing extreme damage to the economy in the form of inflation and high interest rates. Inflation and high interest only cause lack of production, and then tax collections will only increase by the inflation rate, causing hurt to those on fixed incomes, primarily senior citizens. Keynesian Economic Theory doesn't work. Keynesian's brought us Jimmy Carter's Recession, and Lyndon Johnson's Vietnam War. Even George W. Bush fell for the flaw that Government can stimulate, think TARP. It is ego that our Congress and White House think they can affect the economy in any major way, except through the bully pulpit.
Mr. Shapiro said: " Romney opted for a free-market ideologue over a political man for all seasons. " about the selection. He went on to talk about Keynesian's as well. The only way to right the world is to have responsible governments. The reason the United States became what we are is because of our economic responsibility. When the Revolutionary War ended, we had massive debts for the times, our Congress and President worked through those debts. It wasn't until the Civil War that we again faced a debt crisis. Then World War II and Korea caused debt. Since the 1960's we seem to regularly face debt crisis's. There are times when responsible use of debt is necessary. But just like as individuals we cannot keep putting our groceries on a credit card, neither can the government borrow for every day expenses. It is proper to support the country and the people, but we now find ourselves in the position where our politicians are using the Treasury to buy the next election. As an economic plan, this is doomed to failure. The one thing that the old Soviet Union did that made sense was their 5 year plans. We need to look farther than just the next election. The next Depression will be because of Government irresponsibility.
Adolf Hitler's government was a Fascist government, which meant that the government favors one industry over another for the 'greater good'. Can you say banking and automobiles in today's US? And, if you oppose the people in power, rather than a open debate, you are labeled with some evil name, as in Hitler's Germany Jew was evil, so to today are homophobes and racists. Your character is attacked, and they aim to crush you completely. It is very uncivilized. Recently there was the Chick-Fil-A controversy. How dare the CEO have a contrary opinion to those in power, we must shut him down, don't you dare come to Boston, or Chicago. Unlike this is the late Rodney King whose famous quote was "Can't we all just get along?"
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