Tag Archives: Mao Zedong

Over-Regulation Nation

Liberals love to cite how tax rates are at their lowest in recent memory, ballooning corporate profits, and how Bush era policies caused the financial meltdown.  They seem to think these are ample reasons to argue why we shouldn’t deregulate our over-regulated economy.  However, it is becoming harder for the political left to argue this point  since we are witnessing the worst recovery in American history.

The depth of the 2008 meltdown was shocking, but to lust to curb “reckless” capitalism from the political left was not only irresponsible, but also detrimental to America’s long-term economic health.  We are an over-regulated nation.  Florida requires its residents to file reports if a vending machine label is missing.  The Federal Railroad Administration mandates that a letter “F” be painted on the front of a locomotive to indicate which end of the train you are on. Bethesda officials closed a lemonade stand run by children because they lacked a trading license.

If markets are over-regulated, capitalism cannot flourish, entrepreneurship stalls, and the innovative cream that is inherent in the fabric of this nation cannot rise.  Free market enterprise is the only system that has achieved remarkable benchmarks in society.  Take China for example.  When Deng Xiaoping took over following Mao’s death, he gravitated more market-oriented reforms, especially in the rural parts of the country to help farmers.  The loosening of regulations on private business allowed them to flourished and outpace state-run enterprises.  He instituted Special Economic Zones, which allowed capitalism to flourish and attract foreign direct investment.  In short, China is an economic tiger  today because of Mr. Xiaoping.  I remember my East Asia Studies Professor, David Strand, stating in lecture that in this period the middle class of china grew from 5-15 million to nearly 300 million during this economic restructuring.

By loosening regulation, China was allowed to grow.  America’s political left should consider this.  Instead, we roll out disastrous financial regulations, like Dodd-Frank, which is a monstrous 848 pages long!  It contains 400 new mandates, of which only 93 are law and intelligible enough to follow.   The new law is a mess, whose difficulty has been cited by firms. The regulatory leviathan is worse when you look at health care.

On average, one hour spent on a patient is equivalent to thirty minutes of paperwork.  The number of federally mandated reimbursements for hospitals for various ailments will increase from 18,000 to 140,000 that range from parrots, burns, and flaming water skis.  In the Obama’s administrations huge power grab with Obamacare, it only adds more red tape, paperwork, and headaches.  It is the wonder of socialized medicine. In all, the cost of these regulations is staggering.  A study from the Small Businesses Administration found that our over-regulated economy costs an employer $10,585 dollars.

America’s overregulation derives from big government.  President Obama’s desire to increase the welfare state has proven to be expensive and killing America’s potential to have robust economic growth.  His reforms and new mandates costs employers capital that could be used for investment to grow their businesses.  These aren’t fat cat bankers.  Small businesses employ the most workers in America and make less than $250,000 a year, but suffer at the behest of President Obama’s intransigent liberalism.   Government involvement, and the resulting ineptitude that is killing America’s middle class, can best be summarized in the words of Milton Friedman, “If you put the federal government in charge of the Sahara Desert, in five years there’d be a shortage of sand.”

Capitalism – Where the Flaws of Man Only Affect a Few

Flaw in-flaw out, a concept used with data systems. It means the output of a data system is only as good as its input. The effect of the system’s flawed output only affects what it controls. This is what’s so great about capitalism. If a politician, by design or corruption, provides flawed input into policymaking decisions, that policy’s output would affect the entities it controlled. Capital is a constant; a piece of land or a business is such, who owns that capital makes the decisions. When government controls it, it is known as communism. Throughout world history, there is overwhelming evidence of governments inflicting grave harm on their populace. Seeing that politicians are flawed and whatever input he provides, the effects of that system is also flawed. This is an argument for small government. Power corrupts; absolute power corrupts absolutely.

What about the girlfriend who dated the married guy thinking he would leave his wife for her. Eventually, he would confess his loyalty to his wife or decide to give the girlfriend a try. Her blind faith in that flawed character would end up hurting her sooner or later. All you could do is let her learn the hard way but some circumstances call for intervention.

That brings us to Congressman Weiner who demonstrated several character flaws over the past couple weeks. He obviously violated the vows to his wife and then attempted to deceive that the actions actually happened. So why would he treat his constituency any different? To think that he does not use that same judgment to provide input into our political system would be like being the girlfriend, in denial. Why would he not use deception and cynicism to hide his flaws in his policies as he did in those deceitful actions? He even hired a team specifically to cover up those flaws. This time, he got caught.

Political pundits and media went crazy trying to provide cover. They’d point to the Republicans infidelity such as Senator Vitter and, of course, they are not shameless. This only reiterates how flawed politicians are. While some people yearn for the protection of big government, they tend to overlook the dangerous human rights violations of collectivist governments.

Mao Zedong - genocideThere is no better example than Mao Zedong and his experiment the “Great Leap Forward”. Mao ruled China for 33 years (1943 to 1976) and it was divided in communes. In 1950s, these communes would report the amount of grain they produced, which would determine winners. Eventually, these figures became skewed and there was a perception of abundance of grain. Mao redirected his human capital to work other projects. Eventually, food became scarce but Mao continued. The outcome was a devastating famine that killed 30 million Chinese. By the end of his reign, Mao Zedong would be responsible for the deaths of 49 to 78 million people. Whether you’re talking about a fascist racist regime like Hitler (13 million killed) or communist systems like Mao Zedong and Stalin (23 million killed), these collectivist governments controlled the capital and centralized the decision making of the whole to a flawed few. This is the direction that our country is going.

Hopefully, Americans understand the need to push back this collectivist government mentality. That blind faith of capital given to a flawed government that controls through coercion. This is not a lesson we can learn by experiment. Once our freedom is lost…it won’t come back. The mass genocides of collectivist history are well documented. For the freedom and prosperity of a capitalist society like America; we are the only shiny city on a hill. The cans been kicked far enough.

It is time to wake up!