Not-so Free Market Capitalism

For some time now, I've heard it said from those of a very strong conservative viewpoint that Obama would move the United States of America towards socialism if elected. In my own conservative economic point of view, but more liberal social perspective, I laughed this off as an 'extreme' statement that is being used to just scare people away from the candidate they dislike.

However, in the wake of the financial crisis that has risen on Wall Street during these past few weeks, I have started to become more and more concerned that those strong conservatives might actually have some rhyme to their reason. In listening to the first Presidential debate between McCain and Obama last Friday night, I was shocked to hear Obama suggest on multiple occassions that John's view of the "markets just working themselves out" was some type of theory that was impractical in real economics. Time and time again since last Friday, I have heard and/or read democratic leaders from the house talk about how the 'old' theory of the free market won't work on it's own....that somehow 'more' (not better) regulation is the key to economic prosperity. The post on theYreport earlier today from YBS about San Fransisco banning the sale of cigarettes in drug stores is incredibly disturbing and a great example of the democratic party governing 'socialistically'. All of this is incredibly disturbing. How can we ignore all of the economic prosperity that this country has realized as a result of the application of this theory to basically dominate the rest of the world economically for at least the last hundred years?

...And there is absolutely blame to be given to the Bush Administration for supporting this, further evidicing the fact that he has fundamentally changed the definition of what it means to be a republican. Did he seriously ask the congress to pass a $700 Billion bailout bill in like 48 hours. That is more money that has been spent on the Iraq war cumulatively.....and we need to make a decision immediately. The largest single expansion of government in U.S. history should not be taken lightly and done on a night's rest. The other thing that irks me, as the politicians panic and cause additional market turmoil, is that we have regulations that are already in place that are meant to protect citizens and business' in situations like these. These regulations may need to be modified (i.e. - raising the FDIC limit), but what is actually being restored by this bailout? I will at least give W. the benefit of the doubt that his reasoning for this bailout is based on issues that have arisen due to poor regulations that forced banking institutions to give poorly underwritten loans to those that didn't have any business getting them. He is not claiming that this is a result of the failure of the free market. If we allow the free market to play itself out, those that played risky hands will get that hand slapped and lessons will be learned.

Yes, these are crazy times and certain measures may be necessary to fix this problem we find ourselves in, but I get a real sense that there is a subtle, yet intentional message that is being sent to the general public in this crises that is saying "free market capitalism is flawed and the government is the only hope". If this is the case, we should all be scared, but maybe at least we get a new cool salute.

For additional thoughts:

1. Read "Atlas Shrugged" by Ayn Rand

2. See thoughts from Hugo Chavez articulating why he thinks America needs a new constitution....great, let's listen to him.

3. Great article articulating some of these thoughts

4. This one talks about the Socialism of America via the bailout....short and good