Those of us who are fans of Austrian Economics knew it all along. George McGovern apparently learned it too late. Barak Obama and his economic advisers seem clueless still. Government intervention in the economy nearly always does more harm than good. An online article , How the Stimulus Discourages Hiring , in that bastion of free market economics – the New York Times – suggests that more people are learning – some the hard way.
In the article Jay Goltz points out that stimulus initiatives put more financial burden on employers at exactly the time they can afford them least – when they are in trouble and laying people off. He suggests that this means small businesses will be slower to create new jobs. That’s precisely what Austrian Economics predicts. If you prevent the economy from adjusting, the pain will be prolonged.
Goltz opens the article with a reference to an article by -of all people – Geroge McGovern – who after a lifetime of “public service” decided to try his hand at small business. Here is a quote from that article
I’m for protecting the health and well-being of both workers and consumers. I’m for a clean environment and economic justice. But I’m convinced we can pursue those worthy goals and still cut down vastly on the incredible paperwork, the complicated tax forms, the number of minute regulations, and the seemingly endless reporting requirements that afflict American business.
McGovern comments that he wished he had more small business experience before becoming a legislator. Did he mean perhaps knowing something about actually creating value before making the laws that created many of those problems?
Can someone tell me if Barack Obama ever held a real job or ran any sort of economic activity where he would learn anything at all about creating economic value?