Five years ago the United States entered into a recession, not unlike the many business cycle recessions that always plague a capitalist society. But this time was different, as America faced a confluence of forces brought on by a new kind of social liberalism. First, we were visited with the disaster of the housing bubble; it didn’t matter if you could afford the cost of a home, Barney Frank and the Democrats forced banks to lend to anyone who applied. For them, home ownership was no longer something to work and save for, but a right. Greed kicked in as access to money was easy and all one had to do was borrow like there was no tomorrow (actually there was no tomorrow). Banks and lenders, just as greedy, went wild because they could make buckets of cash on loans that they knew were bad. Yet they didn’t care because they knew that when something went wrong, Uncle Sam would bail them out.
To make matters worse, enter a new President- a man who promised a new kind of society, a society based upon his vision of American socialism. Massive bailouts that were really patronage, destruction of an orderly energy industry in favor of green energy that made no economic sense, massive regulation intended to destabilize corporate America, racial and economic class warfare, Obamacare – all had one goal: to share private wealth amongst all citizens, irrespective of their past or present contribution to the creation of that wealth. This goal would radically reshape the greatest economy ever known into a model social utopia that the liberal elites had envisioned. This vision flies against all known laws of free market economics, it is a vision of an economic model that throughout history only a dictatorial government could have imposed, even though no such system has ever been able to sustain itself once that dictatorial power collapsed.
Five years forward and the result is what economists will look back upon as having been inevitable. America has rejected the Obama vision but is paying the price for allowing the Democrats to experiment with the economy. The facts are staggering: the workforce has declined to a historically low level because jobs are scarce and government handouts lucrative; incomes continue to decline, especially amongst the very segments of society that Obama promised to help; there is a wholesale rejection of Obamacare though its damaging effects will be with America for generations to come. America has lost its status as the world’s economic powerhouse and is rapidly becoming just one more economy.
The Democrats just don’t get it! Until Obama, America was a great economic engine simply because of a basic relationship under which business and government co-existed in parallel universes. Only when the capitalist system became damaging to society, to the extreme, did government act to rein it in. It acted only so much as to temper the fervor of the capitalist system, not so much as to permanently damage this fundamental economic engine. Whenever government acted in a punitive manner, the economy reacted negatively and sent a message to politicians to ease up. This symbiotic relationship resulted in a blossoming of capitalist success that has made the standard of living in the United States the envy of the world.
The Democrats and Obama have broken that relationship. Their actions over the last five years, if unchecked, will create a nation of second class citizens with no hope for the future. This is the inevitable result of American socialism. At least in Huey Long’s day, a chicken in every pot connoted that everyone had a pot. The result of continuing with the Democrat economic model will be a chicken in a communal pot! Under that scenario, the divide between upper and working class will continue to expand, and the result will be the elimination of the American middle class.
- Senator Conrad Appel