It is no news to anyone that this has been one of the most economically tumultuous weeks in the history of our nation. While I may not have the personal experience that Shil has with the way financial institutions operate, it is clear to me that a battleground has been set for a fight between the free market and old fashioned socialism.
The government bailouts of Fannie and Freddie, along with a takeover of AIG and a possible trillion dollar plan to stabilize the market are major steps towards a government controlled economy. Free market conservatives sound depressed this week, and they have good reason to be.
The question that remains to be answered is how to return to the free market as quickly as possible. Senator Jim DeMint (R-SC) frames the concern of free market supporters in this government rescue plan:
What is missing from it and from the recent string of bailouts is a commitment to return to a free enterprise economy. … What we need now is not what could be nearly a trillion dollars in new taxpayer bailouts but pro-growth policies that allow our markets to correct and start growing again.
With the government taking over AIG, there is no guarantee of a return to the free market. Democrats will likely seize this opportunity to further expand government. And why wouldn’t they? Senators Dodd and Obama are examples of the kinds of money that Washington insiders can make by propping up institutions with taxpayer money.
The fight between socialism and freedom has rarely been highlighted as it is now. Senator Biden told Good Morning America this week that it is patriotic to pay higher taxes (he even went further and said it’s a Catholic duty).
Earlier this month, Biden claimed that anyone who cares about people with developmental disabilities should support stem cell research. While Biden’s claims are clearly both flawed and offensive, they underscore the ideological struggle we’re experiencing.
The left wants the government to control where the money goes, while the free market proponents want to keep government out. Government has disrupted the market through regulation of energy, health care, banks, and many other areas, and it will be even more difficult to get off the path of regulation and market distortion now.
Contrast Joe Biden’s desire for the government to redistribute wealth with Sarah Palin’s response in the video above. Our choice on November 4 of which direction to take this country could not be more clear.
