We’re Looking At The End Of A Nearly Century-Long Experiment In Big Government…( You Are On Your Own)
John Browne, Euro Pacific Capital
BusinessInsider.com
Jul. 17, 2012
The Fourth of July week brought unwelcome birthday gifts to the United States in the form of poor domestic jobs data and similarly gloomy information from other major economies. Amidst the heat and festivities, it has become difficult to deny that the economy is deteriorating.
Politicians appear helpless, thrashing about for a solution and blaming everything and everyone but themselves. This lack of leadership is apparent to those who have by now lost all confidence of a possible quick rebound, if only the tough decisions had been made early and swiftly.
For many of us the reality is simple: government has become too big, too costly and too aggressive. This has progressed to the point where what’s left of the free enterprise system is now suffocating. Furthermore, the costs of massive amounts of quantitative easing (QE) and artificially low interest rates are perpetuating sluggish and unproductive economies both here and in Europe. Unless radical change is implemented, our economic future will be bleak.
The tepid “recovery” of the last few years has restored just 4 million of the roughly 9 million jobs lost in 2008-10. Last week it was announced that in June 2012 American employers added only 80,000 jobs, a figure far below expectations. It appeared even worse when seen in context. In the first six months of 2011, employers added an average of 160,000 jobs each month. In the same period of 2012 that figure dipped to 150,000. The decline occurred despite the supposedly stimulative effects of negative interest rates and trillions of dollars of government deficits.
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