Our economy in the hands of politicians does not bode well

A great post from Jim Cardoza at Liberty Pen:

The inmates are definitely running the asylum these days. It seems if any business succeeds wildly, like Exxon, government quickly moves to punish them, using weapons like the windfall profit tax. Politicians cite fairness as their motive.

However, when a business fails miserably, like AIG, government is willing to give them boatloads of money---the former property of individual Americans. Politicians cite our best interest as the motive, arguing that they have brilliantly averted an even worse scenario.

Such an economic policy should be recognized as absurd on its face. The idea that the free market doesn't work, and that the better way to run the economy is to have a handful of all-knowing central planners at the helm, has been proven by history to be a surefire recipe for the destruction of liberty.

The problems with political interference in the everyday economic behavior of people pursuing their own interests are primarily twofold. First, by themselves making the rules, politicians have unlimited opportunity to dispense favors. Why does one business get bailed out and another not?

And secondly, the considerations that weigh most heavily to politicians, when making essential economic decisions, completely lack the component of restraint. In other words, why should a politician, whose vision routinely does not extend beyond the next election season, ever curb spending? After all, government can simply print money.

The ability of politicians to manipulate the markets has brought us to the economic mess of today. And yet, this situation has worked out well for those big government advocates. At great price to the American people, ownership of our nation's financial system has been transferred to the very politicians who destroyed the last one.

Ten times out of ten, the central planners responsible will blame the "lack of regulation" for their failures. The Great Depression was no different. But, how can the free market be responsible? The Federal Reserve was established in 1913. It has been 95 years since we have had one.