Geithner Threatens Capitalism Again

By Caomhin

This guy needs to go, as quickly as possible.  Though in some respects, at least he’s being honest about the Administration’s state planning framework for their economic theories.  Geithner said today that, “capitalism will be different,” and further evidenced his anti-free market beliefs by stating that,

“This will clean out a lot of the excesses and bad practices. And those that don’t get cleaned out just by experience and knowledge now, better regulation and oversight, better rules of the game, enforced more cleanly will fix it.”

Regulation is a fine line, too much or too little can be devastating and I think the government’s involvement in the Fannie Mae and Freddie Mac cases show how government intervention led to the gigantic bubble and subsequent burst from which we are still reeling.  In fact, if we had gotten the investigation that the GOP called for which was blocked by people like Barney Frank the problems that we are currently facing may not have been so severe.  I have no doubt that the new Administration will over regulate the market place as well, another negative consequence for our nation’s long term prosperity.  What is important about the aforementioned segment from the Politico piece, i my opinion,  is “better rules of game.”  The rules of the game, of course, are determined in the free market.

People are free to choose in which contracts and associations they will enter.  This is one of the tenets of the free market.   The government’s purpose is more as a moderator not an active participant, the more the government involves itself, the more rights are stripped away from the individual and power is transferred from the citizens to a centralized government.  The rules of the game are always changing, of course, as determined by the market behaviors of the individual.   That is why stock prices constantly change, that is why clothing style change, it is why everything changes.  The tastes, the needs, the opinions of the participants in the market decides what is fair.  This is also how prices are set.  It is an equilibrium that is constantly being sought or set based on the level of production, which in turn is based on demand.

I do not want to go to far into economic theory here, as I could continue for volumes, however, it is imperative that one recognizes that prices and rules are never static.  They are constantly changing in response to the participants in the market.  When Geithner states an intention to change the “rules of the game,” he is talking, of course, about changing the way individuals behave through the government entering into the market place, disrupting equilibrium, and the ability of individuals to engage into private contacts of their choosing.  He is not hiding his desire nor his intention of having the government go to war with the free market, which in turn, is an assault on the rights of individuals.  In short, he is all but admitting that he will start our nation on a march toward a more socialist state.


1 Response to “Geithner Threatens Capitalism Again”

  1. 1 » Geithner Threatens Capitalism…Again Trackback on March 12, 2009 at 1:34 am

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