Economic Judgement or Chickens?

Economic judgment or “a chicken in every pot and a car in every garage.”

Election 2010 is over but the battle not won. Different party in charge of the House but same problem, a growing number of self-indulgent Americans who look to big government to solve all their problems and supply all their financial wants. That and a willingness to sell their vote to any political charlatan who promises to do so.

Economic judgement or economic ignorance? Today we face possible hyper inflation and an ever lower standard of living.

There are economic truths no political edict can overcome—a fundamental principle we need to heed. A principle too often not heeded by Republican or Democrat administrations, not the last four years of President G.W. Bush and certainly not President Obama’s Administration.

Economic truths are self evident. Wealth does not flow from a mountain of debt. Economic growth comes from savings and investments. Lasting wealth for all comes from hope, ideas, inventions, and hard work—not from bigger government, inflated dollars, government bailouts, increased debt, higher taxes, and comfort without labor. And no country in recorded history became economically stronger by weakening their currency. Neither can we.

Do we ever learn? America’s “spend your way to prosperity” policy during 1960s and 1970s ended in double digit inflation and soaring commodity prices. Democrat and Republican financial polices drove down our dollar's value at home and abroad. Gold prices increased more than 2,000 percent. Sound familiar?

Republican President G.W. Bush’s Administration supported a monetary policy of huge deficits, artificial low interest rates, and pushed for a weaker dollar abroad. President Obama’s Administration also pushes a monetary policy of artificial low interest rates, a weaker dollar, and huge deficits— far more than anyone could have imagined under President Bush.

“Fallacies do not cease to be fallacies because they become fashionable” ___ G. K. Chesterton

Today, the Federal Reserve not only pursues an easy-credit low interest rate policy, it is now monetizing the debt, creating money out of thin air. The result of course, causing more and more dollars chasing the same amount of goods and services—inflation. If not stopped, higher and higher inflation and a lower standard of living. To reverse direction means short term economic pain. Hard choices need to be made. Choices elected officials who think only of reelection will not make. Are Republicans up to making those hard choices? Not to do so means never-ending boom and bust and ever lower standard of living.

“O put not your trust in princes, nor in any child of man;
for there is no help in them.” ____ Psalm 146: 2

Republican or Democrat our periods of boom to bust to boom and bust again come closer and closer together. To stop this cycle requires tough and painful decisions. When it comes to making painful decisions, past experience has nearly exhausted my trust in Republican office holders to do the right thing. I gave up on any Democrat Administration decades ago.

“Hope is no longer appropriate because they have left the One Who is the source of hope.” ____ Unknown

That is the bad news. The good news is we do not to need to put our faith and trust in political parties. Nor should we. The secular world stands on the shifting sands of fear, doubt, and ephemeral pleasures. The good news, those with hope stand on the Solid Rock—a loving God who shall supply all our needs.

Not only can we survive a possible financial apocalypse, we can avoid one. Our economy is wide and varied. A majority of Americans are hard working and innovative—if given the freedom to be so.

“Now therefore thus saith the LORD of hosts; Consider your ways. Ye have sown much, and bring in little; ye eat, but ye have not enough; ye drink, but ye are not filled with drink; ye clothe you, but there is none warm; and he that earneth wages earneth wages to put it into a bag with holes. Thus saith the Lord of hosts; Consider your ways.” ___ Haggai 1:5; 6,7

Continued political awareness on our part is required—as is prayer. America needs to re embrace Judeo-Christian values of self-discipline and personal responsibility. As a nation and as individuals we must pursue the promise of God’s best. As a nation and as individuals we must consider our ways. It is not too late.

______ Michael E. Odell

What can you do to change the negative direction our elected leaders have taken us? For six proven action steps go to Blog Archive at upper right, click on May-11-08, “But What Can I Do?” Pick yours.

Your thoughts and comments are welcome, well most of the time.
E-mail: odellmike@comcast.net