Saturday, October 11, 2008

A completely dysfunctional mainstream media

One has to conclude that the system by which people get and process political information is completely dysfunctional. We’re in the midst of a financial panic caused by clear, identifiable actions at specific points in time by specific people. Yet the same people who caused the problem are trusted more by the American public on economic matters than other people who didn’t cause the problem, who predicted the problem, and who tried to fix the problem before the explosion.

We also know that the people who caused the problem have provided no solutions which make any economic sense, yet the American people are likely to give them the power to implement their make believe “solutions”.

We see the traditional nostrums of socialism trotted out once more – higher taxes and more regulation. Yet misguided regulation based on socialist ideology is the very source of the problem to be solved, and higher taxes on business have been proven to depress economic activity time and time again. We’ve been there and done that – more than once.

So what we face is an administration determined to administer Keynesian “pump priming” snake oil. Massive government spending increases, excuse me, “targeted investments”, will lead inevitably to a return of 1970’s style “stagflation,” that wonderful world which took 20% interest rates to break out of.

Populist “economics”, if one can call it that, has been tried so many times in so many countries that only a person with absolutely no understanding of the subject, or who calculates his personal benefits will exceed the general decline, could be taken in by it again. Yet that is where most people are.

Economic populism is more than just a slightly pernicious set of theories. Countries which have been in its clutches for long periods of time have experienced huge relative declines compared to more enlightened neighbors. It looks as if America is in for one of its periodic economic bleedings – an apt description paralleling the old medical “cure”, which was long a populist medical solution.

One would have hoped that economic knowledge would have reached the point by now where such obviously detrimental practices would be historical relics, but while socialists continue to worship false economic idols, they know exactly how to instill their brand of idol worship into each new generation of gullible students. They may not know anything about economics, but they know a lot about propaganda. And while the airheads in the MSM couldn’t rub two economic facts together to save their lives, they are experts in at least one thing – transmitting propaganda.

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