The Economic Disaster Tsunami Ahead

There is a saying that appears quite prosaic, platitudinous and just a mere tautology, but it is, rather, highly profound in its permanent and evident veracity and integral soundness: Only production produces productivity. It is worth repeating: Only production produces productivity. The important need for ardent reiteration of a fundamental economic truth, which has, nonetheless, escaped almost all economists today, will be revealed as the reader dives further into this illuminating article.
Modern market economics demands the functioning of the realities of market-driven forces concerning production, i.e., supply and demand, of course. Even John Kenneth Galbraith, a few years before his death, finally had, grudgingly, admitted the basic superiority of free-market economics, not the god of socialism he had greatly worshipped almost all of his adult life. Keynesianism (by whatever euphemism) just doesn’t work; and the mixed economy approach, therefore, still produces real disasters such as, e.g., the one now existing on an international scale. How can this be empirically proven?
On December 16, 2008, the Federal Reserve System’s Federal Funds Rate was lowered to 0 to .25%. If either Keynesian or neo-Keynesian economics really worked, however, there would have been no need to ever lower the rate to such a hyper-ridiculous extent beyond normal economic reasoning, much less just plain common sense. Productivity in the nation’s economy would have been, moreover, quite evident in terms of viewing, by now, a truly definite turn toward a both genuine and viable economic recovery.
With the two stimulus packages passed just this year, over $1 trillion dollars has been made available- but, it hasn’t worked; and it doesn’t take a genius or Ph.D. in Economics to recognize that notable and clear fact. Of course, in the act of throwing more fuel on a fire in order to absurdly stop it, there are idiotic plans, under Obama, for uselessly spending yet another $1 trillion dollars; this, too, will inevitably fail and Obama, in his heart of hearts, knows it; however, it will, thus, successfully achieve what he really wants as a sign of great success and truly real achievement: laying the basic foundations for a social-market economy, in America, on the (economically decadent) European model.
President Bush, within that same week, had publicly stated that he felt the important need to sacrifice free-market principles to supposedly save the economy from a future collapse. In splendid, Orwellian language truly worthy of a most skilled and dissimulating politician so freely engaged in aggressive tergiversation, he then asseverated, upon his vast wisdom, that he had to give up free-market principles for the sake of saving the free-market system. What?
In an application of such monumental “logic” applied in other terms, it might then be said, perhaps, that a man could very well reason that to save his precious wife’s life, he would have to then kill her, so that no murderer would ever be able to do so. This rare man, this President, must, surely, possess a most towering intellect, an outstanding genius of a high caliber, which will, remarkably, shine incredibly forth for untold, amazed generations to come. What?
Bush’s (absurd and illogical) comments were notably said to reflect an extraordinary departure from his once and well-known advocacy for having an only unfettered free market, which reflected upon his administration, as he surely has, in absolute contradiction, orchestrated unprecedented government intervention in the face of a dire financial crisis.
The national (and international) economic-disaster fiasco, however, continues apace without any profound rational thought being given to the obvious fact that such financial stimulus activity does not work; it will not work; moreover, it cannot work. But, of course, no one is supposed to notice what ought to be manifestly perceived as reasonably being the economic truth.
Many very misinformed or, perhaps, hopeful people think that the present and near-future economic crisis of the current terrible recession is about most or almost all that can be reasonably expected to occur. Not so. The coming next Great Depression will be, in terms of the 21st century, much worse than it was for the people during the 1930s. How so?
Few of the citizens of this nation are prepared, one sees, to easily endure the extent and depth of deprivation and anxious suffering that Americans of the 1930s were, in general, willing to accept; instructively, most of the parents of the 1930s generation and, certainly, all of their grandparents came out of the late 19thcentury when true luxuries were few and only for the few who could afford them; hardships, the tasks involved with living, were mostly expected and taken, on balance, to be just a fairly normal part of one’s human life.
Today, many former 20th century luxuries, however, are now assumed to be just normal and quite requisite utilities that are of the regular or average essence of all basic contemporary civilization. Can, therefore, the relatively privileged masses of this current era really so endure the very substantially reduced standard of living that will surely come, which would not have at all seemed so to those cited past generations that had then fully experienced the 1930s?
Thus, there is, because of the massively dis-economic policies and programs of the to-come, Fabian-Socialist administration of Barack “Where is his actual birth certificate?” Obama, the predicted, future economic disaster tsunami is ahead; it will, inevitably, make the Great Depression of the 1930s seem, in contrast, as if it were just a simple, mild recession; the current Republican administration is, therefore, merely preparing the same path, essentially speaking, that will be surely then taken by the incoming Democratic one: Keynesian economics (read: Fabian Socialism) will be, thus, much further ideologically applied.
The errors committed by the New Deal, initiated and supported by FDR ,will be heightened, under Obama, to many absurd degrees to then make an essentially bad situation at least a thousand times worse for years to come. The only alternative possibility starts (maybe) in the year 2010 when opposition members (who would not be liberals) can be elected to the US Congress, unless the bulk of the American people are fooled by propagandistic efforts to conceal true failure; such a concealment has, unfortunately, happened before in domestic history, as in the aforementioned 1930s, when FDR was allowed to continue his failed policies and programs that, in fact, had prolonged and intensified the Great Depression.
In politics, there is the old but true expression: Never say never. History, in a certain general sense, can basically, not absolutely, repeat itself if the same fundamental errors in thinking persist and, moreover, end up behind what gets done in future situations. Obama, apparently, expects that the next major economic bailout will be at least $1 trillion dollars, that’s 1,000 billion dollars, for those who might care to know the figure rendered in billions of dollars.
And, after all this taxpayer-created money gets shoveled around, where will there be put into actual motion various concrete aids toward exciting conditions for (please see the first paragraph), encouraging much needed economic productivity? This will, of course, be added on top of the other trillions to become part of the Federal government deficit accumulated on an annual basis.
The Keynesian economic philosophy will be one of continually taxing and spending for the sake of spending and taxing for reviving the economy that will not, in fact, revive under such absurd conditions. The Federal government will act, therefore, to unfortunately suck out financial resources, misallocate economic components, that could have been better applied and much more rationally in the free-market economy, which will not be allowed to mostly or, much less, fully function.
Efforts at trying to encourage the production of goods and services, since America’s financial reality is mostly that of a consumer-driven economy, will, thus, be significantly stifled by gross interventionism, done on a grand scale, that will logically inhibit (please see the first paragraph), the requisite economic productivity of a modern market economy.
All this plainly dis-economic activity will, necessarily, prolong and intensify the growing depression from its status as having been just a former simple recession. The financially insane 21st century Leftist response to the national economic crisis will be the New Deal writ large in terms that will easily dwarf anything that FDR did. But, will the majority of the American people be witlessly willing, years after hopeless year, to simply accept futile failure as being normal for the economy, for their children and grandchildren, and for their retirement savings? This remains to be seen.