It unfortunately appears that the Obama administration continues to not realize the damage he is causing to the economy and instability that is being fostered by the Federal Reserve’s decisions. What makes his actions even worse is the lack of a spine in the Republican Senate and House to stand up and pass good legislation that helps the good people of America. Even if the President threatens to veto the legislation it is important that the our elected representatives stand up and do something. Recently Dawn J Bennett had an interview with Logan Albright from the conservative-libertarian think tank FreedomWorks.
One important topic that came up during the interview that needs to be further discussed is the fact that our current government has decided to implement an economic policy that is the same as the one which led us into the last three recessions. As Dawn J Bennett repeatedly points out we are just eight or so years past the financial collapse of 2007/2008 and yet we seem to have already forgotten the painful lessons of that time. When the 2007/2008 recession happened it was just a housing sector bubble that burst, but now we’ve got a policy that may lead to a much worse one.
Now we have a bubble in our education sector, manufacturing sector and a growing one in the housing sector. Obama’s policy has let us reach a point where we have over a trillion dollars in student loan debt. Our manufacturing sector is also being boosted by billion dollar bailouts to automakers whose product people aren’t interested in. This continues to put a burden on the tax payers and the answer from the administration is appalling. They want to tax the rich and provide the middle class with two free years of community college. This is the type of policy which destroys the family and continues increase people’s dependence on government handouts.
What needs to be happening now is an end to this Keynesian system of flooding the market with money and poor economic policy. This is what’s creating these bubbles that lead to economic collapses. If quantitative easing can be gotten rid of it may cause deflation and be painful for the economy but, like Dawn J Bennett points out, it will help shrink and reduce the froth happening on these various bubbles. We cannot continue to let our debt balloon out of control as it has been doing recently otherwise it will cause instability in the markets and we will see people start to drop the dollar as the fiat currency.