With the economy in shambles (supposedly) the world has once again reverted back to the age old question, “How much government do we want?" Some will argue for more government to regulate and control our economy while some will argue for less. Most Americans were raised under the core ideas of laizzes-faire economics. However, I think most Americans can’t handle this and their recent actions prove this.
Essentially a free economy for the private sector to control and regulate with few if no government regulations as described by Adam Smith in his The Wealth of Nations. Private businessmen create and build the economy while competition with the other corporations acts as a regulator. This is the basic 18th century liberal (liberal then is different than liberal today) ideology. America was founded during these times and the majority of our founding fathers believed in this liberal ideology. Thus our government is based off a laizzes-faire capitalism democracy.
The crazy thing, is there is nothing in our government today that even represents this notion. We have drifted so far away from this that we are purposely moving ourselves more left. I’m sure the people who oppose Obama or socialism or whatever the new scapegoat is today would love to think that this has been there but they’d be hard pressed to learn just how wrong they are.
So what things in the American political and economic structures defy the idea of lazizzes-faire capitalism. Since the beginnings of our government we’ve seen numerous instances of movement more towards the left but the largest one happened in 1913. After numerous attempts to get a central banking structure in our history, the private sectors and political interests groups got their wish in 1913. After being completely created, designed, and written by a private interests mainly prominent bankers. The Senate Republican Leader, Nelson Aldrich handled its creation and admittance to the political spectrum which Woodrow Wilson passed through due to political opposition. Congress later voted it in as an amendment with majority support by the Democrats and majority opposition by the Republicans (remember the parties were opposite on positions than they are today).
Woodrow Wilson later spoke in regret stating:
“I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation,
therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the civilized world. No longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men.“
So what is so bad about the federal reserve that it would make him state this? The main goal of the Federal Reserve is to do two things: control inflation and regulate the circulation of money in the “system”. Who runs the Federal Reserve? The president appoints a board to preside over the central bank while the rest is run by the private sector. What does this mean? It means that a select few in this country have the ability to not only regulate how much money is out there but how much it is worth. Meaning if they took money out of the system they would increase the value of the dollar while the opposite effect for putting money in. To control inflation they adjust interest rates which further regulates the value of the dollar.
So what does this all lead to? What it leads to is that a private system presided over by a government elected board controls every aspect of money in the entire country. Although presided over by a board, the Constitution gave full authority over coining money and regulating the currency to Congress. Meaning, yes, it was presented as an unconstitutional idea when it first was presented. Not only that it goes directly against laizzes-faire capitalism as an outside force regulates the value of the dollar and inevitably the goods of everything in the economy. Not only that it is in the hands of the few rather than the many which goes against the idea of competition.
However, Americans today see the Federal Reserve as a necessity like they did when it was passed. What helped it to get passed? FEAR and panic. After economic slides people were more willing to allow such “heresy” into our government. Now the so called right-wing conservatives who support this laizzes-faire capitalism theory of our founding fathers accept these without so much as a second glance.
Other less major but still important things have happened which further impedes laizzes-faire capitalism. Trust busters or anti-monopolies, social security, welfare, minimum wage, hour limits, etc. More recently things such as the Bush Administration’s bailout of the financial industries, Obama’s stimulus package, and the taking away of CEO’s bonuses. All of these things impede on these things that supposedly we support. All of which people from all sides of the spectrum have supported at least one on. All of which that moves us farther to the left and closer to socialism that people like Hannity whine about on a nightly basis to get more views.
So in words we support laizzes-faire capitalism but in reality we fear it. Why? Because Americans can’t handle it in its purest form. They never have and never will. The truth is the mainstream American wants regulations on businesses and money because they believe in the common principle, “Power corrupts and absolute power corrupts absolutely." You don’t trust the corporations and you don’t like what capitalism will bring.
For example, capitalism runs on a boom and bust cycle. Generally because of monopolies and or “stored” money capitalism will always lead to a bust. However, this generally works as a “cleansing” method as generally after we are left with a boom and stability.
But, Americans can’t handle this process. Or maybe people in general can’t handle this process. No one said that capitalism was perfect or the best idea but it is what we hold to be best working idea. But you people can’t even go along with it. Monopolies and trusts scare you because of that power. Those CEOs who earned their bonuses... you get mad at them and think they are sinking their own corporations. People see the busts as the end of the world but really it’s just a dampening point that weeds out the worthless specimens who wastefully spend on credit and eventually debt.
All of it leads to this: laizzes-faire capitalism scares you. It strikes fear in the American people. So much fear that they are willing to take the “lesser of two evils” by putting socialist ideologies into the system. Trust busters, minimum wage, regulation on corporate activity, and even a central banking system.
This fear was apparent at the recent “tea party” as numerous hypocritically sound Americans came to attack the government for spending too much. Yet they’d get angry at them if they didn’t spend much and even angrier if they spent something they didn’t approve of. You elect them to represent you not ask you what to do people. Yet this further shows that fear of unregulated structures in our country. You fear the unregulated business and you fear the unregulated government that you put into place on your own will.
Just like after 9/11 where you let the terrorists win by striking fear into you to take away rights and liberties that the government willingly ate up and wage a war of fearful oppression. Fear led to these policies and you wanted them to do it. Fear makes you criticize and oppose an unregulated government even to the point of going against representative democracy. And it is obvious fear pushes you away from laizzes-faire democracy.
What are we left with? We are left with a nation who acts upon fear and manipulation. This country is a nation of sheep. You are more willing to elect a dictator closer to that of Hitler than a candidate who resembles the beliefs of this country and its founding fathers. You fear the terrorists, big business, and government yet you publicly act the opposite. For once this country needs to stop acting on fear. They need to stop letting such events as a recession affect how they think this country should hold the economy. You need to stop letting these terrorists win as they now know you will cower in a corner if they blow up another building. Take a lesson from one of those founding fathers, Benjamin Franklin, who wisely said this:
They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety.
This is a free and independent nation founded on the courage of people who fought for justice and liberty. A nation who thought all people should have the right to live, liberty, and the pursuit of happiness. A nation founded by those who through a tea party in favor of liberty and justice with the backbone of courage. Not a nation who throws tea parties out of fear. Not a nation who thinks all people are inherently irrational and corrupt. Not a nation who cowers in fear. A nation of wolves not sheep. Start acting that way.
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