Failure of the free market system?

I'm reading a lot about how the free markets have failed and how we need to change this or that. In order to arrive at that conclusion you'd have to be either intellectually dishonest, ignorant, or possibly both. It's convenient to blame the current economic struggle on the failure of the "free market", however the market we have is neither free nor would it be a failure for a truly free market to experience periods of economic contraction. First of all a free market implies that there is an absence of external manipulation; with Congressional bailouts and the Federal Reserve tinkering with interest rates our market is anything but free. In fact it is the very actions of Congress and the Federal Reserve that led to the economic crisis we are now suffering. Second, in a free market excesses and malinvestment are corrected through a cleansing that comes with a contraction in the economic cycle, any attempt to intervene only postpones and increases the severity of the correction. Third, it is asinine to assume a system as complex as the US economy could be manipulated without unforseen consequences which may be more detrimental than those initially feared.

It's interesting (at least to me) that our grandparents are regarded as the "Greatest Generation"; largely because of their sacrifice during WW2 as well as the subsequent prosperity our nation enjoyed following their victorious return. They also experienced first hand the calamitous consequences of the Great Depression and responsibly saved and skimped for the remainder of their lives in preparation for the next round should it ever occur. Simply put: they experienced adversity, learned from it, and as a result were better prepared than previous generations.

It's understandable to avoid adversity and protect loved ones from the same, one possible concern being that experience is an excellent educator and as a nation we have been skipping classes for two generations. It is precisely this tendency for present day Americans to avoid hardship, demand assistance, and willfully acquiesce liberty that resulted in an economy built on consumer spending and consumption rather than saving and production. Throw in a fiat currency and a government that is willing and able to pass laws to "protect" it's citizens and you have the recipe for an economic time bomb.

Perhaps it's a bit conspiratorial, but I think the chaps in Washington don't want self sufficient citizens, the kind who can't be bribed with handouts in exchange for votes; its better for them to have a bunch of ignorant simpletons who need entitlements to survive. How else would you explain an unlimited annual tax deduction on mortgage interest and an annual cap of $5000 on retirement savings?

Would you rather be and ignorant simpleton or a thinking citizen?

-Joe

consistent men

In an effort to pare down my library of books and make room for new volumes I have been listing duplicates, previously read, and books I no longer want for sale on Amazon. Interestingly enough I came across this passage from a 1st edition 1947 printing of Kenneth Roberts book "Lydia Bailey." Needless to say, it is no longer on the Amazon sell list.

"I'm not over-enthusiastic about books that teach or preach, but I may as well admit in the beginning that my primary reason for writing this book was to teach as many as possible of those who come after me how much hell and ruin are inevitably brought on innocent people and innocent countries by men who make a virtue of consistency.

All the great villains and small villains whom I met so frequently in the events I'm about to set down were consistent men-unimaginative men who consistently believed in war as a means of settling disputes between nations; equally misguided men who consistently believed that war must be avoided at all hazards, no matter what the provocation: narrow men who consistently upheld the beliefs and acts of one political party and saw no good in any other; shortsighted men who consistently refused to see that the welfare of their own nation was dependent up on the welfare of every other nation: ignorant men who consistently thought that the policies of their own government should be supported and followed, whether those policies were right or wrong; dangerous men who consistently thought that all people with black skins are inferior to those with white skins; intolerant men who consistently believed that all people with white skins should be forced to accept all people with black skins as equals. And I know that any nation that cannot or will not avoid the dreadful pitfalls of consistency will be on e with the dead empires whose crumbling monuments studded our battlegrounds in Haiti and in Africa."

It's not often that I read fiction, however I'll be making an exception in this case.

-Joseph Graves

a healthy skepticism

trust. dictionary.com defines trust as the "reliance on the integrity, strength, ability, surety, etc., of a person or thing; confidence".
should we trust our government? if you examine and study the intentions of our nation's founding fathers i believe you will find they encouraged the opposite. why? perhaps because trust relaxes our natural defense mechanisms. if you trust someone or something there is no reason to be defensive or question their motives; trust implies confidence. to follow someone trust is essential, in military applications it's vital, in government it is devastating.
in his final speech as the president of the united states, dwight eisenhower stated "we should take nothing for granted. only an alert and knowledgeable citizenry can compel the proper meshing of the huge industrial and military machinery of defense with our peaceful methods and goals so that security and liberty may prosper together". (emphasis mine) why would he take the occasion of his farewell address to implore the citizenry of our country in such a way? could it be that he foresaw the disastrous effects of misplaced trust in government? we must remain vigilant, educate ourselves, and hold elected officials accountable, apathy has led to our present state of affairs.
we as americans should mistrust anything coming from government, not as an act of civil disobedience but as patriots. by maintaining a healthy skepticism we are able to combat the special interests and career politicians who have absconded with our democracy. our constitution vests the power with us, the citizens of the united states and we have abdicated our responsibility and authority to the very government designed to serve us. rage against the machine said it best "you've gotta take the power back".

-joe

inaugural Address

To the people of America. For too long now we have allowed politicians and special interest groups to steer our country into oblivion. The time is at hand to wake up, take responsibility, and demand accountability from our elected officials.

At it's current rate our federal deficit will broach the TEN TRILLION dollar mark before the end of 2008.

What does this mean to you?

It means that if significant changes are not made immediately, the future of our nation is at risk.

In the Revolution Tavern there are no republicans or democrats...liberals or conservatives... only Americans. Citizens concerned with the direction of our country. This is no place for rhetoric or slogans, only intelligent debate.

Through education, dialogue, and discourse, members of the Revolution Tavern plan to alter the course of a nation. Just as our Founding Fathers convened to hatch the bold ideas that formed the foundation of our country, we take up the task of restoring the ideals that made us great.

So come, join us for a cold one and discuss the restoration of a government that is by the people and for the people.

In other words: complacency must die.

-Joe and Brian