This is the section in which I will attempt to summarize the details spoken of by Schiff and Celente in reference to my post The Future Isn’t Bright. For further background information, I would recommend that you go back and reread my posts on Austrian Economics vs. Keynesian Economics. Part one is linked under Austrian and part two is linked under Keynesian.

This portion on government intervention and attempts to control the market can easily be made to sound like a difficult concept but it really isn’t.

The Constitution is very specific that Congress can only spend money for the purposes of the entire population of the USA. That is a very narrow definition. What is not permitted is getting involved in one segment of the market or another. The government would have to take money from one source through one of the many, many taxes it imposes and redirect it into a specific market or population segment excluding others.

An individual is not allowed to take money from another for their own purposes. That is called theft. The intent of the Founding Fathers was to prevent the same form of theft from a government that they experienced. Because of the experiences of the Founding Fathers and especially their warnings regarding banks, they devised a government so that the government would stay out of the affairs of business. The rationale is very simple. If you place an undue burden of taxation on your citizens, then you disable innovation. You hinder forward progress that can be found by unlocking the abilities of your citizens to come up with answers.

By restricting innovation to the areas government wishes to favor, you restrict the growth potential of your society and business. This effectively handicaps the nation in the area of international trade and leads to the downfall of a nation. We have seen it happen repeatedly in history with the Soviet Union being a recent example.

Making it simple, government intervention into the markets is assuming the few in government know better than those in the real world. If this were remotely true, it should be easy to point to government programs that actually work. But according to the chief accountant of the USA, the government fails horribly. To expect politicians to know how to run a business is to expect dogs to know how to catch squid in the Atlantic. If you do not have experience in a given field of industry, your odds are very high that you will fail. That is why politicians have no place in telling business, science and more what to do. You have the clueless trying to tell those with knowledge what to do and we are footing the bill.

Thanks,

Anah

Our Random Articles

• Upside Down Times Part II
• Upside Down Times Part I
• Things That Make You Ponder
• Caveat Emptor
• It Has Been A While

More Links