Thursday, April 13, 2006

Big Government's Successes

Understanding the value of free market economics requires a lot of study and analysis. A study of history teaches us a lot of this. Primarily, throughout history, governments have proven themselves successful. Yes, that's what I said, successful.

It is a very real fact that the government can successfully change the economy for the better. However, when it does this, it is always very minute changes.

There are great examples of this. For one, governments have found that, by controlling the printing of money, instead of sticking by a gold standard, they can ensure that recessions are less severe than they would be otherwise.

The Federal Reserve board, the group in charge of the money supply in the US, has worked to control both inflation (rapidly rising prices) and deflation (rapidly falling prices) to avoid recessions. This has been a success on the part of the government.

There are many other examples. The US Government has been remarkably successful in its decision to support Israel. Israel is one of the major players in the Middle East, and by supporting them, we have assured ourselves an outpost in a very dangerous area of conflict.

The US Government has successfully produced an alternative to gasoline, made by liquifying coal. It has also managed to limit the usage of tobacco by its "sin tax."

It has ensured that companies survive and that industries don't break down during times of low revenue through subsidies. It has successfully rebuilt almost every country it has attacked.

Overall, there are a large number of things the US Government, through its place as a larger government, has successfully done. Unfortunately, there is more to the equasion. Next time, we will analyze the costs of these successes and realize an interesting fact that politicians today tend to neglect.


One of the greatest delusions in the world is the hope that the evils in this world are to be cured by legislation. – Thomas B. Reed (1886)

For more on the Federal Reserve Board and Deflation:

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