Change Is A’Comin’

If Obama were truly interested in “creating jobs” he would cut taxes and spending and abolish regulations that hogtie our productive capacity.

(CHEYENNE, Wyoming) - Millions of Americans have voted for Barack Obama to “fix” our economy and are breathlessly awaiting his inauguration so that he can implement his plans to “Get America back to work.” Are those voters ever in for a surprise.

In a Nov. 22nd radio address, Obama stated that “We are facing an economic crisis of historical proportions” (true enough) and that “We must do more to put our people back to work and get our economy moving again.”

How does our new president-to-be intend to achieve this result? Obama declared that “I have already directed my economic team to come up with an Economic Recovery Plan that will mean 2.5 million more jobs by January of 2011,” and that “We’ll put people back to work rebuilding our crumbling roads and bridges, modernizing schools that are failing our children, and building wind farms, solar panels, fuel-efficient cars and alternative energy technologies…”

This, I submit, is the worst kind of economic claptrap, and is easily demonstrable as such. The fallacy, in essence, as Henry Hazlitt pointed out in “Economics In One Lesson” back in 1946, consists of looking at the short-term effects of government policies in regard to some areas of the economy while ignoring or evading the long-term effects in all areas. As Hazlitt states it: “The art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups.”

For example: If the federal government decides to spend $100 billion in subsidies on “public works” projects, will this create jobs? Absolutely. Thousands of people will be employed doing work that would not have been there otherwise. That’s the short-term effect on some sectors of the economy. How about the long-term effects in the wider picture? Since all government spending is rooted in taxation, Americans now have $100 billion less to spend as they would have spent otherwise, which means: a net loss of jobs in the sectors of the economy that would have been patronized by consumers had they been free to spend their money as they see fit.

Those jobs, however, are never noticed as missing: they are, after all, not there. The facts, however, are quite clear: all the jobs that are created by “publics works” funding in some areas of the economy are balanced by an equal destruction of jobs throughout the rest of the economy as a whole.

And that’s just part of the problem: when investment capital is forcibly shifted from the most efficient producers to the least efficient, the rate of return drops, which means: an overall loss of jobs and productivity. Thus, as in so many other cases of government intervention, the exact opposite of the stated goal is achieved, thereby making all of us that much poorer.

Given such an approach to fostering job development, you can bet your bottom dollar—if you still have one—that our economy truly is “going to get worse before it gets better”; Obama’s “public works” policies will positively guarantee it. So much for his supposed concern about those “millions of Americans” lying awake in their beds at night; and so much for the claim that his administration will “spend wisely” and “focus on what works.”

So: what does work? When investment dollars are allowed to flow freely, they will always seek to maximize their rate of return. In this way successful, productive companies are rewarded with investment dollars—and can now expand productivity—while failing, non-productive companies are penalized and are compelled to become productive or go bankrupt.

If Obama were truly interested in “creating jobs”—as opposed to uttering empty rhetoric geared toward the concentration of more and more federal power over our lives—he would do well to nurture that creative process, which would mean: cutting taxes, cutting spending and abolishing the incredibly stifling and intrusive mountain of regulations currently hogtying our productive capacity. Should such measures ever be adopted, we could actually watch our economy skyrocket instead of growing ever more sluggish with each passing year.

Such measures, however, have never been attractive to the Democrats; and, as the last eight years have made abundantly clear, they are not attractive to the Republicans either.

So: what to do? My recommendation: buy gold, guns and a farm. The time is rapidly approaching when you are going to need all three.

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Henry Ruark November 26, 2008 1:20 pm (Pacific time)

To all: Fatuous to state sub-prime mess did NOT come from deregulation. It was ONLY when dereg allowed unbounded pursuit of profit that those unqualified could g be sought out and signed up --and that's what the public record plainly shows. That record widely accepted by national media and attributed to Sen. Gramm as major perpetrator, as cited here with links to realities. If whatever document you cite is so strong, please produce as link for "see with own eyes" and evaluate ourselves, rather than buy your unsupported statement. We put up ours, long ago. SO where's yours now, to support empty words without it. For the record, realities as mentioned here recorded in several Op Eds on file in our Archives, supported by some "see with own eyes" links and with further documentation on request to Editor with ID. Re T.Paine, unclear to which one you refer (since several seem to have spoken here !) so suggest we let him speak for self in the Federalist Papers. Have you read them ? If not, without put-down, will state you are uninformed as per some others so characterized here. Tht's NOT defamation, simple fact of life. Opinion, to differ from b/b feeling, is built on checkable information, which is why professional publication of "informed information" is worthwhile for anyone whose mind is still open for further learning via democratic process so activated. They can read, then see, and confirm or disagree via own mind-work. Tht's what open, honest, democratic dialog should produce, not empty-words bias and prejudice set forth as solid opinion. Thank you for participation truly appreciated here.

RICH November 26, 2008 8:39 am (Pacific time)

Dave it was not cutting taxes and deregulation that got us into this mess, it was issuing subprime loans to financially unqualified people that began in the late 1990\'s. The memo has been in the public domain for 9 years now Dave. THOMAMAS PAINE good to read your good common sense once again. As you can see we still have many around who still have none of that common sense, so thank goodness we had Ben and George and so many others that could freely provide their opinions in an atmosphere that though pretty contentious at times, we still listened, evaluated and respected their opinions instead of diminishing them for reasons that only those with partisan issues could comprehend. I use the word \"comprehend\" loosley.

Henry Ruark November 25, 2008 4:26 pm (Pacific time)

Srry, friends, fumblefingers --namely hcr-- forgot to sign stuff...pernicious no-no for any credible writer. SO heey acknowledge "anon" making point about some now driven to final/defense of personal attack when faced with impregnable fact-impacts, usually via "see with own eyes" and invite to evaluate with own mind. SO foofaroo to you two, too and hope you enjoy Osama Obama in coming months and years, demonstrating that massive mandate conferred by millions seeking rational, reasonable economic common-sense.

Anonymous November 25, 2008 2:32 pm (Pacific time)

TO ALL: At T.P. insistence, here's "see with own eyes" quote from current Op Ed, seeming to show persona-attack bias felt so strongly by those angered, irritated, or otherwise forced to cogitate. Sorry for any pain, guys ! But that's what apathy forces, and perhaps less cost and full confusion remedied this way. "In the more-radical rants, some few even resort to precisely the same coded language which seeks current devastating violent action, to assure continuance of our notorious defiance of Constitutional opportunity for all, regardless of skin color or other racial differentiation."

Henry Ruark November 25, 2008 2:02 pm (Pacific time)

To all: Just got email from Tom and he asked me to tell syonymer he has me confused with another radical also condemned by too many. Futher he said to inform same masked-man that he is confusing personal feeling with "informed opinion" made potent by the power of inescapable fact, properly "seen with own eyes" prior to rational evaluation with own mind. That tears off the intentional smear re status-sought, long ago lost for anyone at 90, awaiting that final call and enjoying every minute of dislocation and disenchantment of some via forced cogitation when irritated, angered, or otherwise prodded into unused cogitation activities. SO I assured Tom same tactics he used seem to work fine now, too... !!

Henry Ruark November 25, 2008 1:33 pm (Pacific time)

Hey Tom ! Same old sameoldstuff NOW you used to suffer too... Here's "see with own eyes" from Op Ed currently running, just to update you for same S... to which some find they must resort, even today. See you soon, and say Hi to old George and Ben F. when you see them next, probably at that tavern where we used to tear apart those pernisious Federalist Papers...Understand they've now become national best-seller and cannot help but wonder why some miss 'em. Could it be a form of modern illiteracy, Tom ??

Thomas Paine November 25, 2008 11:01 am (Pacific time)

To Henry: Jesus, how many times do you have to comment on this guy's article? And I was completely unaware that someone has to be "qualified" in order to have an opinion. My qualifications were pretty limited when I wrote "Common Sense." It is the IDEAS that matter, and whether they are right or wrong; NOT where someone went to school, NOT how much they have written in the past and NOT whether they have ever been published or not. Those "far-right libertarian" ideas, by the way, were responsible for the formation of this nation, and are nearly identical with the "classical liberalism" espoused by myself and my contemporaries. Let's leave the FDR-style collectivism in the past where it belongs...

muchtruth November 24, 2008 4:13 pm (Pacific time)

people are still not getting it. There is an elite group that runs the western world, and you can not be president without their 100% approval. It is not difficult to understand. Its in history books, if you care to turn off the tv and research. The Rockefellers/Rothchilds etc. Been around for over a century and they know what they are doing. Much practice. The Federal Reserve Bank is now our president. This is not speculation, this is proven facts, documents and history. It is all about a new world order. The bankers that run the president, caused a calamity, so that they could come and be the saviour. Again, history over and over. But wait! order now and we will give you a false flag attack and blame it on the CIA employee osama bin laden. Osama has been dead for years. Miss Bhutto confirmed it before being assinated. It is NOT the Reagan admin, nor the Bush admin, nor the Clinton admin etc. They are all doing the same agenda. JFK was about to expose these people. Listen to his speech in regards to transparency, hidden agendas, Operation Northwoods, etc. He was killed by the CIA. Now, another proven fact. People need to wake up. What do you think the Federal Reserve Bank owners have been doing over the past century? I will tell you what they have been doing. Getting bored of being billionaires, and deciding they want power and to run the world. Again, history proves it. Infiltrate the media and the public school system, and become the mighty and powerful. History repeats itself over and over. And you all keep falling for it. What a shame.

Henry Ruark November 24, 2008 5:42 pm (Pacific time)

To all: Please note conclusions in article based on unsupported suppositions by writer, with latest ref. 1946 (!) economist colleague of Friedman who made same points, then admitting just before death he had been in serious error. Point here is disinformation and its impacts (see current Op Ed) and continuing denial of painful impacts on limited life experience, denying both historical facts and huge consensus of historians and economists. I note no links to any solid source ever offered from each of these cavil/cavorters; ref. to FDR-findings controversial, contradictory, confined to single college academic group, under attack by consensus of most others, deny deep-piled history, economic, social, cultural, even religious read of FDR regime and rising level of American life ever since New Deal. Who was it that said: "We still have those nattering nabobs of negativity with us", and could he have meant some similar to these ??

Dave November 24, 2008 4:10 pm (Pacific time)

Uh, cutting taxes and deregulating are what got y'all into this mess. Or didn't you get the memo...

muchtruth November 24, 2008 4:00 pm (Pacific time)

people are still not getting it. There is an elite group that runs the western world, and you can not be president without their 100% approval. It is not difficult to understand. Its in history books, if you care to turn off the tv and research. The Rockefellers/Rothchilds etc. Been around for over a century and they know what they are doing. Much practice. The Federal Reserve Bank is now our president. This is not speculation, this is proven facts, documents and history. It is all about a new world order. The bankers that run the president, caused a calamity, so that they could come and be the saviour. Again, history over and over. But wait! order now and we will give you a false flag attack and blame it on the CIA employee osama bin laden. Osama has been dead for years. Miss Bhutto confirmed it before being assinated. Henry, take you "research" and stick it where the sun dont shine. Branch out and learn the truth ol man. This is ALL about the bankers, Rothchilds/Rockefellers, wanting a world government so they can control the world. WHy is that so difficult for people to understand? It has been done over and over in history. People cant understand that 911 was orchestrated by their own government, because history was taken out of the media and the education system. Cavemen did not make 3 towers collapse in their own footprint at freefall speed. Building 7 did not collapse perfectly because of a couple of small fires. Its impossible. But, go back to your tv, or Henry, go back to your bias studies that dont branch out with the American Spirit. Just follow the routine so that you can have a small say on salem-news.com. Maybe its time Henry, to start taking time to learn the truth and helping your fellow man, instead of following what is comfortable to you.

PS November 24, 2008 9:54 am (Pacific time)

Appears approximately 57+ million voters are sympathetic with this writers views. In my opinion these numbers will grow. Obama has appointed a "Back to the Future" cabinet so far, plus his chief of staff (Rahmbo) is the type of person whose background demonstrates (he's a pug!) that this job he has taken is beyond his ability because of his temperment. The Chief of Staff is to facilitate for the American people good communication flow to the president. Obama has limited experience in executive matters, so now we have all these Clintonites coming back to do what? They are the ones who set this financial mess in motion. How many on his staff currently have successfully ran businesses and understand capitalism via their own experience? How many are theorists? How many have just been politicans and nothing more? The writer of this article is a private citizen whose view has merit, as does Henry's, I just agree with the formers viewpoint based on my life experience. Please note Obama's people are using FDR as a model for mitigating our economic condition. Recent university studies by a major economic department have calculated that FDR's policies prolonged the depression by approx. seven years. Those who understand the free market, capitalism and democracy realize that less government intrusion will allow us to recover faster, the people on Obama's staff will take us into an abyss if they use FDR's policy template or anything similar. Yes I agree with buying gold (silver if you can't afford the gold), weapons and a stable food source. Stockpiling material in this unsettled world is simply good sense.

Henry Ruark November 24, 2008 8:43 am (Pacific time)

To all: "Informed opinion" on this even includes Wm. Kristol, long conservative economic guru. Here’s “see with own eyes” link to his final line in 1st pgh stressing that this “case is new, so we must think anew” --surely destroying the clap-trap perpetrated on us previously by neocon triumph over honest conservatives: November 24, 2008 Op-Ed Columnist Admit We Don’t Know By WILLIAM KRISTOL (His conclusion, after thorough examination of current situation) "During his two years on the campaign trail, Barack Obama has often cited Abraham Lincoln. Well, it turns out Obama could be taking over the presidency at something more closely resembling (though still far short of) a Lincolnian moment than one would have expected. And it was Lincoln who wrote, in his second annual message to Congress, in December 1862: “The dogmas of the quiet past are inadequate to the stormy present. The occasion is piled high with difficulty, and we must rise with the occasion. As our case is new, so we must think anew, and act anew. We must disenthrall ourselves, and then we shall save our country.” "I’ve worked in government. It’s hard to do much thinking there at all, let alone thinking anew. But Obama and his team will have to think anew, and those on the outside who wish to help will have to think anew too, if we’re to have a chance of rising to this daunting occasion." -------------- Surely when famed leader of conservatives kicks old failed ideas into discard, all of us should pay close attention !! Then, too, whom would you want to trust here -Kristol or the freelancer filing this stuff ? For further rebuttal check out my own Op Eds for past three years.

Henry Ruark November 24, 2008 7:59 am (Pacific time)

To all: B.H. here sums up precisely the mythic and fantasy-based economic fallacies that are at the heart of what we've suffered ever since Reagan. The only comprehensive answer would be pgh-by-pgh rebuttal, which requires far more room than available here. But for those who have lived through the Great Depression, then the New Deal, then the doldrums and destruction of the Vietnam and War II times, and THEN the total destruction set into motion by neocon falsities by Reagan and Bush I and II, reality has already reared its hydra-head and many have suffered from its nasty multiple bites. Ask any friend who has just lost his job. Rational, reasonable people voted for Obama; rational, reasonable people knew what they were doing, are patient enough to give him his fair shot, surely earned the hard way. Again, wit, wisdom, will of the American people will prevail despite the private interests desperately driving this failed and folly-ridden economic infamy from which we have suffered too long already and which demands change as the 21st Century proceeds. Per "qualification" to so speak, check mine vs his. One good way is to see the prior materials-written; you have some 500 shots in my Op Eds in our archives. Where's his ?Where published ? By whom,and how paid ? What's his background in journalism ? Where and to what levels did he achieve special training other than military ? YOU have a right to know for any expression intended to shape your lives ! Many a freelancer finds it easier to satisfy any client than to continue starving, which is where much of this clap-trap comes from, still paid --usually covertly-- by neocon "noise machine." That's where these Far Right libertarian ecoonomic ideas and now-disproven fallacies first originated, still being desperately "sold" to the unwary and uninformed. IF you buy this clap-trap, welcome to it, "enjoy" while you can, as since Reagan days. Death of both capitalism and then democracy will follow, with private economic interest exemplified by "profit uber alles" actually ruling the world.

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