Demunists, Commocrats and Jobs

If it were not so sad it would be funny.  This is one of Dennis Gartman’s favorite sayings.  The reaction to the May Employment Report by those in Washington would be hilarious if it weren’t so serious.  The reaction of those brain-dead in Washington is “We have to craft better policies to get jobs going”.  What they consistently fail to realize is that it isn’t what they have to do but what they have to NOT do.  What will get jobs oging is for government at all levels to simply remove themselves from the picture.  When a British magazine is comparing the situation in America to the License Raj in India, you know there is a serious problem.  We need less paternalism, less of government trying to save us from ourselves and more freedom to try and fail, more freedom to make bad decisions or fail to pay attention and pay the price.  The answer is not to craft better policies but to get out of the way.  That is the difference between progressive Demunists and Classical liberals (ie, conservatives) – the latter realize that most often, the best policy is to do nothing.

2 Responses to “Demunists, Commocrats and Jobs”

  1. Bob Heeter Says:

    Don’t kid yourself… the jobs disaster blame is truly bipartisan.

    Out of all the employment sectors, construction was the most thoroughly devastated by the Great Recession, and is the one which, most of all, hasn’t even shown a pulse in the recovery.

    Construction is dead because the credit-for-housing bubble was so huge, there’s not much need to build anything right now.

    The credit-for-housing bubble was pegged, in advance, by a number of people (including the almighty Krugman) as a deliberate policy move by the Greenspan/Bernanke (under BUSH) to recover from the dot-com implosion recession. The economic “maestros” didn’t pay much attention to what they had spawned — and of course no weak-spined central banker wants to take the blame for taking away the punch bowl, nor have his minions lose their lucrative Wall Street after-gigs because they tightened up the regulations on the banks doing the foolish lending. So no one listened to the doomsayers during the rush to get rich. But it was a Rethuglican policy (not a *conservative* one) to meddle with the credit markets to spawn the bubble to patch up the economy in 2001-2004…

    As a result, everyone knows that the jobs market will be a disaster until the housing market clears, and that’s going to take another couple of years.

    Now, if you ask me, the Bush administration’s ability to manage the economy was pretty thoroughly sabotaged by rampant financial fraud unleashed in the equity markets during the Clinton administration’s “dot com boom” (not to mention Glass-Steagall repeal, CFMA, Enron setup, etc.)… so I think the blame goes at least a generation further back… and of course the Republicans owned the House back then, and it was Gramm who led the Glass-Steagall repeal, so it’s still a bipartisan mess.

    During the long boom, people grew complacent and too trusting. Partly as a result, today we have 545 people who are enriching themselves and their cronies at our expense. Each half blames the other half for the problems they have collectively created for the rest of us, but nearly all are complicit. Some of the cronies have to take turns being on the receiving end of the spigot, while others switch sides as needed to keep the stream flowing, but the true wealth of the vast majority of the people (not measured in bubble-dollars, but in tangible goods and services received) has not increased for 2 decades.

    None of the politicians we’ve elected are statesmen or stewards of the national interest. This has to change.

  2. t0mmyBerg Says:

    Bob, I could not agree more. That is why I did not say anything like Repubnicants have the right ideas, but rather that Classical liberals might, there being precious few Classical liberals in Washington or any state capitol. My problem is that guys like Obummer run around saying that serious spending cutting programs do not reflect the America he knows and people respond to this – which indicates the real problem, which is that as people have become accustomed to the Government being involved in all aspects of life, the cultural expectations of limited government that used to define us as a country, and served us well, are now likely to be painted as “extreme” or “radical” thoughts, rather than mainstream, and so a solution becomes more and more remotely likely. The set of cultural expectations has changed and it is that which threatens the longevity of the American experiment, politics today is merely symptomatic of the change. And the change is not confined to the Demunists, though they are more likely to demagogue it.