Free Markets, Free People

Daily Archives: April 29, 2013

Economic Statistics for 29 Apr 13

Here are today’s statistics on the state of the economy:

Personal income and spending both rose 0.2% in March. The PCE price index fell by-0.1% at the headline level and was unchanged at the core. On a year-over-year basis, income rose 2.5% while spending rose 3.5%. The PCE price index rose 1.0%, while the core rate rose 1.1%.

The Pending Home Sales Index rose 1.5% in March to 105.7, the highest reading this year.

The Dallas Fed Manufacturing Survey collapsed from 7.4 in march to -15.6 in April. The production component slipped from 9.9 to -0.5. The series of negative Fed manufacturing reports continues.

Dale Franks
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The death of “common sense” and the age of dependance

If ever there was an apt description of our general problem in this country, Dr. Milton Wolf nails it in the first paragraph of his discussion of the building disaster we call ObamaCare.

The fatal conceits of Obamacare are the absurd notions that the government can spend your money more wisely than you can and that bureaucrats are more capable than you are to make your own most intimate, personal decisions. The antithesis of government-centered Obamacare is what I simply call “Patientcare.” Patients should be at the center of our health care universe, not President Obama and not the government.

We suffer under a landslide of the same fatal conceit applied to literally hundreds of government programs in this country.  These fatal conceits (or flawed premises if you prefer) have cost us literally trillions of dollars and much of our freedom.  Government has essentially decided that it’s priorities for your money are more important than your priorities for what you earn.  And, it had also decided that in many areas it can make better decisions for you than you can make for yourself.

But, that’s not the problem in full.  In full, the problem is exacerbated (and the notion “validated”) by the number of people who, for whatever reason, have bought into the efficacy of these conceits.  They believe the flawed premises to be true and willingly cede their money and freedom believing government does indeed spend their money more wisely and is more capable than them of making “good” decisions on their behalf.

The problem, of course, is that as long as those people who willingly enslave themselves to government exist in large enough numbers, they’ll succeed in putting the shackles on the rest of us as well.   As long as they look at the federal government as their care giver, they force that on the rest of us as well.

One of the reasons we have the debt and deficit problems we currently suffer is the left has been very successful in selling those flawed premises via emotional appeal to low information (and frankly, ignorant) voters.  They’ve avoided rational discussion with “for the children” campaigns.  They’ve often claimed “market failure” where government created problems through preverse incentives and market intrusion and then push government as the solution.

Years ago we came from a people that knew that nothing was “free”.  They knew that there really wasn’t anything called a “free lunch”, someone had to pay for it.  The knew that you were responsible for your own welfare, self-defense and freedom.  And interestingly, so did most of the politicians of the time.  Oh there were certainly those among them that believed as the left does today, but they were a distinct minority.  Their creed was considered extreme and, frankly, un-American.

Now it is they who are “main stream” and those who call for much less government intrusion in our lives who seem to be considered the extremists.  Common sense, the ability to see through the blarney and nonsense, seems to have died.  In the so-called information age, we seem to have a growth of ignorance.  Part of that I lay at the feet of another government program that has been a woeful failure – public schooling.  Common sense tells you that such an institution would be unlikely to teach anything negative about government and, in fact, might even become a bit of a propaganda arm for it.  That it might involve itself in a bit of indoctrination.  That it might fill fairly benign subjects with information preferred by government and spend less time on information that wasn’t in favor at the time or is contrary to the agenda it prefers.  But that all assumes an ability to teach the core competencies, something most of our school systems seem unable to do with any great success.  So we have the misinformed and the illiterate buying into the government’s flawed premise in droves.

Obviously a great deal of things over the years have led us to this point of dependency on government.  And we know how it ends.   It is the blue state model and the blue state model is failing all over the country and the world.

Yet was still hear it extolled by its zealots and lapped up by the ignorant who refuse to look beyond the promises.  It still amazes me that we’ve managed to get in this mess and can’t seem to find the intestinal fortitude to say “enough” and begin doing the very unpleasant task of reversing it.  But that’s the problem, isn’t it? It would be unpleasant.  And we don’t like unpleasant.  So instead, we continue to believe the fantasy.

The problem, of course, is like Toto in the Wizard of Oz, reality is going to pull back the curtain very soon and expose the fantasy for the fraud it is.  And then we’ll look back at “unpleasant” as something we wish we’d done.

By then, it will be way too late.