Ok, those weren't my words. It was a conversation I heard yesterday at the picnic. Sometimes when you hear things like that, you've just got to listen to more to see where its coming from.

Of course my views are very different. I don't think I'm in a mess to begin with, and if we were in a mess, its the governments that got us here. Notice the plural on that. I'm certain that some individuals have gotten themselves into a mess. Not sure why they feel its one of the greedy levels of government to get them out of their own mess.

There are some fairly obvious answers. The first that comes to mind is that the government can't spend itself out of the economic downturn. They got us here that way, and more spending will only make their problems worse. Governments problem is that they must make it appear that its not their fault, and then somehow to bite the bullet and stop the policies that have us here.

The answer to all things governmental is to raise taxes.

Back to the teaser/opening title. I know the person that made the statement. Not well, they're not my friends, just friends of my son and his wife. They drive upscale cars, probably costing significantly more than any I've ever owned. And they live in an upscale neighborhood, in a home costing several multiples of mine. And worse yet, they feel they're good money managers, having an interest only loan.

I know that last because of an interest rate discussion that followed the opening. It seems they feel its unfair that government has lowered the federal funds rate, but their banks have raised the rates they charge on credit cards. Those in attendance yesterday seemed to cleave into two distinct groups. Those that are completely oblivious (me, too) and those that live in terror that soon interest rates will go up significantly.

Later on another discussion with most of the same players were discussing their careers. The fad seems to be to contiuing to change jobs and forever reach for an ever higher level of achievement. That translates into changing jobs, constantly looking for one that pays more. I can't help but think that I no have no such goals, except to remain employed where I am until I retire. I don't want all the heartache of learning where the drinking fountain and rest room is at a new employer. And wondering if it'll still be in business next year. Of course if my employer shuts down, I'll just retire.

We do NOT want government control of the economy! I'm surprised anyone would look to the government for that.

quote:

Originally posted by rburg....The fad seems to be to contiuing to change jobs and forever reach for an ever higher level of achievement. That translates into changing jobs, constantly looking for one that pays more. I can't help but think that I no have no such goals, except to remain employed where I am until I retire. I don't want all the heartache of learning where the drinking fountain and rest room is at a new employer. And wondering if it'll still be in business next year. Of course if my employer shuts down, I'll just retire.

Sounds like the people discussing these things are at a different stage of their lives than you are.

I wonder if you weren't once just like them.

Government control of the economy? Too late. Let's see...we have the "Necessary and Proper Clause," the "General Welfare Clause" and the "Commerce Clause." By the way, those are in the Constitution. Makes one wonder if the Founding Fathers were either stupid or malicious, doesn't it? I prefer to think they were just stupid.

To compound the problem, we also have the 16th Amendment and the Federal Reserve Bank.

quote:

Originally posted by Quarter Cherokee:
Government control of the economy? Too late. Let's see...we have the "Necessary and Proper Clause," the "General Welfare Clause" and the "Commerce Clause." By the way, those are in the Constitution. Makes one wonder if the Founding Fathers were either stupid or malicious, doesn't it? I prefer to think they were just stupid.

The government doesn't yet control the economy.

Please tell me how the government doesn't control the economy? I added to my original post the fact that we have a Federal Reserve Bank. When a private corporation, chartered by the Congress, controls interest rates and issuance of what passes for "money," how is that not government control?

The government doesn't control production, exchange, distribution, costs, or consumption of goods or services or the markets in which those occur. Certainly it regulates some business wirthin those functions and it sometimes trys to influence some those functions and the market,but our government doesn't control them.

Sgt Preston here. This may sound a little far reaching, but I think the rest of the world is waging a "sort of" economic war against the USA & are determined to reduce us to a 2nd rate power to "reign us in". The price of oil has nothing to due to the economics cost /value of oil. Somehow I feel that this is being manipulated as a result of "their" dislike of our foreign policies. Just one old Jarheads observations & opinions. Sgt Preston USMC LLA

No, it doesn't, but it regulates the hell out of it. If that isn't government control, I don't know what is. Government taxation and regulation of business are two of the largest disincentives to produce and an incentive to move production off-shore.

A recent Washington Post headline states "Paulson To Urge New Fed Powers." Secretary of the Treasury Paulson wants "the Fed to be given new, explicit powers to intervene in the workings of Wall Street." Holy Crap!!!

QUOTE]
The government doesn't yet control the economy.[/QUOTE]

No but it sure does a good job of screwing up the economy.

Ken

The government doesn't control everything....Dick Cheney does.

quote:

Originally posted by billhud:
We do NOT want government control of the economy! I'm surprised anyone would look to the government for that.

It's government control that's gotten us into this mess. We're a free market society. If we allowed private enterprise to build nuclear power plants, refineries, solar plants, wind generating facilities, harvest oil off both coasts and the gulf, as well as ANWR, fuel would cost much less. That would truly stimulate our economy.

If Greenspan hadn't artificially stimulated the economy by continually lowering the interest rates (in order to make his boss look good), the housing market wouldn't have taken such a dump in key areas of the country.

Govt's problem re our economy is that they think they're competent to micromanage the economy. They're not.

Government policy can affect the economy -- badly if government actually does anything, favorably if they just leave things alone -- but it cannot control the economy. It's like squeezing a balloon -- clamp down on one area, and things will just swell up elsewhere, either in the form of a black market or some totally new, alternative market no one in government foresaw. Trying to control the economy is in the long run a loser's game.

Bush is the "DECIDER" and he'll decide how he's going to get us out of this mess.

Smitty

I like the last two replies. (Pisgah & Tomhenry) Affect has an effect. Usually bad when the government gets involved. I disagree with the free market idea, however. It took a powder when King FDR reigned in these United States. Hasn't been seen since, not by me, anyway. I hear it pops up here and there once in a while, but gets regulated and taxed out of existence before I get a chance to check it out. Last I looked, the US was just barely in the top ten of economically free nations. Maybe our standing has improved since, I don't know. Hong Kong and Singapore were numbers one and two. Why? Well, 'cause their governments, oppressive as they are, actually believe that markets are self-regulating.