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Friday, January 06, 2006

We Are Close To The End

Not be hysterical or anything. More from my liberal Baby Boomer friend (he is real, I swear).

Liberal:

we're a debtor nation; our glory days are coming to an end

My response:

May I quote you on that? When did we become a debtor nation? Our deficits began around 1787 when Hamilton was forced to borrow on the amounts we had already borrowed in the Revolution. He chose to pay off the notes issued to finance the war. He did not seek World bank forgiveness.

Bill Suda asks:

Didn't they say the same thing about us when Japan was a principal buyer of our notes?

Then after I accused the liberal of interfering with competition, he writes:

Liberal:

I don't limit competition- big successful companies are in the business of limiting competition its the nature of that beast to do so

My response:

Actually, you are correct about the big business nature to dislike competition. But they only get to do so with governmental assistance. See licensing regulations, taxation, fees, Sarbanes-Oxley, minimum wage, social security, tariffs. All of the latter examples of anti-competitive factors are created by government. I know. I know. It is just the Republicans. And the Democrats.

Not part of my response but for you readers:

The Index of Economic Freedom ranks the US tied for 9th place among countries of the world. Not bad but it could be much better. Likely modern day liberal economic policies would drop us considerably. Why? Because (from MARY ANASTASIA O'GRADY of the WSJ):

The 2006 Index of Economic Freedom, published today by the Heritage Foundation and The Wall Street Journal, provides powerful clues. The annual report surveys 157 countries, grading property rights protection, the regulatory environment, tax rates, fiscal policy, government intervention in the economy, monetary policy, black markets and trade policy, assigning each a numerical rating. Each country falls into one of four categories: "free," "mostly free," "mostly unfree" and "repressed." This year's results are here.

All of the factors listed are negatively effected by modern liberal economic policy though President Bush can improve significantly (especially in trade policy, anti-trust and of course spending).

In related bad news of the US economy:

The Labor Department's fresh snapshot of the nation's jobs climate, released Friday, also showed that the unemployment rate dipped from 5 percent in November to 4.9 percent in December, as some people left the labor market for any number of reasons...For all of 2005, the economy added 2 million jobs -- a solid amount and about the same as the year before. The unemployment rate averaged 5.1 percent last year, an improvement from the 5.5 percent average registered in 2004.

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