When you look at this administration's major actions, it is difficult to find one that is targeted at the problem it alleges to address. TARP was supposed to buy the underwater assets of banks but has instead turned out to be a gigantic slush fund. Cap and trade was intended to save the earth from global warming. But most experts agree that it will do little if anything to reduce global temperatures. Rather it will also be a gigantic slush fund where the government choses who to tax and who to subsidize. Financial reform has nothing to do with the mortgage problem and asset bubbles. Rather it creates an all powerful single federal czar to oversee consumer laws and regulates hedge funds which had nothing to do with the crises. Health care reform was based on accessibility, the uninsured and costs. The legislation before the congress addresses none of these issues. Rather it allows the government to seize one sixth of the economy. The stimulus package was to stop the rise in unemployment. However, again it was nothing but a big slush fund that had no impact on unemployment. Get the picture? Its like Orwell's 1984 in which the government agencies are mislabeled, e. g., the Ministry of Peace conducts war and the Ministry of Information is the propaganda arm of the government. All of the efforts of the Obama administration are likewise mislabeled. The only thing that is consistent is that each is intended to expand the reach and power of the federal government. Personally I do not understand how anyone could endorse such an approach that has only demonstrated failure throughout history. The government is neither efficient, compassionate, understanding or even remotely consumer-friendly. Its one-size-fits-most rules are the opposite of what is produced by the market. From what I can gather, there are two types who favor the expansion of government. The first are those who think that they will be the rule makers and can impose their superiorness upon the great unwashed. The second is the group that benefits from the government's largesse. Those who receive more in transfer payments than they pay in taxes. However, the vast majority of us are not in either group. We are the ones who are imposed on, who pay for all of this, and who find our standards of living declining. The majority of the American people understand this and are opposed to the government increasing its reach. The result of the government imposing itself on us raises the bottom by pushing down the top. Yet by discouraging productivity and innovation, the economy as a whole becomes worse off with less growth and ultimately less revenues. Lastly what all the pro-government people don't seem to realize that one day those in the government may not be sympathetic to the liberal causes and start sending the favors over to those who are currently being punished by the liberals. Remember "what goes around comes around."
Harold A. Black is professor emeritus in the Department of Finance, University of Tennessee, Knoxville having retired after 24 years of service. He has served on the faculties of American University, Howard University, the University of North Carolina - Chapel Hill and the University of Florida. His government service includes the Office of the Comptroller of the Currency and as a Board Member of the National Credit Union Administration. He also has served on the boards of directors Home Savings of America and its parent company, H. F. Ahmanson & Co., Irwindale, California prior to its merger with Washington Mutual Savings Bank, on the board of New Century Financial Corporation, Irvine, California, then the nation’s largest real estate investment trust and as director and later chairman of the Nashville Branch of the Federal Reserve Bank of Atlanta. He writes an occasional article for the Knoxville News-Sentinel at http://www.knoxnews.com/staff/dr-harold-black/. His web page is haroldablackphd.com