Wake-Up Call for America: The Magic Wand is an Illusion

Magic wand

Oh Mighty Government, Wave That Magic Wand! (Image from Wikipedia)

Since the first shock waves of the current economic crisis hit in the fall of 2008, the prevailing attitude on Main Street, Wall Street, and virtually every other street in America has been that the government needs to JUST DO SOMETHING!  The “something” has been an ongoing matter of debate, but the gist of the calls for action have been that government has the ability to make things all better again.  Try as they might with “free” money (stimulus), tampering in markets (for starters, owning GM/AIG/Fannie Mae/Freddie Mac and buying Treasuries–their own bonds–to keep rates artificially low), and buying troubled loans from banks (transferring risks from banks to all Americans), all of these efforts have proven capable of only one thing: delaying the inevitable days of reckoning.  The proverbial chickens do eventually come home to roost, and we will eventually have to swallow the bitter pill of past problems brushed under the rug woven from wasteful and counterproductive government interventions.  Housing is still sinking.  Joblessness is not improving.  Congress is in a stalemate over the federal debt ceiling.  The U.S. borrows 40 cents of every buck it spends.  Suffering has set in across America.  My plea?  JUST DON’T DO SOMETHING!


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