Friday, February 27, 2009

Upset about gov't efforts to help to the economy? It's written in the Constitution!!

David Rickard, a very astute listener to my (former) radio show, pointed out something from the Constitution:

(from the preamble)

The Constitution of the United States of America

"We the people of the United States, in order to form a more perfect union, establish justice, insure domestic tranquility, provide for the common defense, promote the general welfare, and secure the blessings of liberty to ourselves and our posterity, do ordain and establish this Constitution for the United States of America."

Sustaining the economy is fundamental to "promoting the general welfare." By doing nothing or "leaving it to the market," the government is abrogating one of its fundamental responsibilities as dictated by the Constitution!


cuOnTheOtherSide said...

I can get "promote the general welfare", "promote the Corporate welfare" is were most of the masses have trouble.

mike norman said...

At this point it's almost irrelevant whose welfare the gov't promotes. We're in such bad shape that promoting anyone is better than promoting no one. It's like having a garden that's drying up in a drought. Pouring water on one corner of it may not be ideal, however, at least some of the garden thrives and, who knows, the water may seep through the soil, at least to some degree.

cuOnTheOtherSide said...

In an environment of stagnate wages would you expect falling prices or rising prices? Current actions of the Government are expected to support prices. How does this help all involved?

In the past the FED has often pointed to wages as the significant cause of inflation. Wages were stagnating even when questionable Inflation numbers were used. The FED pursued a policy of growth (Inflation). How did that help all involved?

The income of the top 1% has doubled over the last 10 years thanks in part to tax cuts while that average worker saw little if anything. How did that help all involved?

Setting this latest financial episode aside, for some time those who main source of income is/was the working wage have been stifle by a number of issues.

- Stagnate wages

- Eroding rights in regard to credit. Mostly Credit Cards and Bankruptcy

- Inflating prices. Most notable home and commodity prices.

And now hit with a declining stock market (50% from the peak) and falling home prices.

If one looked at it from this point of view, the Government really needs to get it right.