Washington failed us on economy

How can anyone fail to be in complete shock over the government involvement in our free market? Only those who are apathetic about politics, ignorant of history, disciples of socialism, members special-interest groups or politicians seeking re-election can fail to be concerned.

History shows that big governments are generally significantly non-productive. They actively inhibit those operations of the free market, necessary to survive and grow. As they fail, the residue left behind is devastating.

Some government is necessary, as identified in our Constitution. But government does not create permanent, expanding jobs. The private sector does.
Currently we are in an economic recession. Its approach had been obvious for some time, as the value of our dollar decreased and the price of gold increased, but we failed to react. The value of currency and the price of gold are direct reflections of an economy’s condition.

There is plenty of blame to go around, in both private and public sectors. In the private arena, public noninvolvement, ineffective exercising of existing business regulations and poor management are much to blame. In the free market, problems are resolved by the investors and operators, under the threat of failure.

The government actively contributed to create our economic problems. As former Federal Reserve Chairman Alan Greenspan now admits, his Fed keep interest rates too low for far too long. Sen. Christopher Dodd’s support for relaxing “mark to market” accounting practices distorted those practices. Rep. Barney Frank’s support of “marginal mortgage” quotas — in which loans were required to be made to poorly qualified homebuyers, in the name of affordable housing — led to foreclosures and reduced individual credit ratings.

President Bush failed to veto these and other restrictions to the free market. (With our overwhelming abundance of oil, coal and nuclear power, all of Washington has plenty of blame for our dependence on foreign oil.)

It is time to halt increased government spending. You cut, not increase spending during times of recession. You reduce all taxes and discretionary spending.
Let Congress know how you feel and tell the lawmakers to read and understand issues before they vote.

Walter F. Johnson
Albemarle County