In March 2009 this newspaper published my letter that stated: “This financial crisis is a wonderful educational opportunity for people to learn basic economic concepts.”
I wrote: “Now we are told the government is the only source of the answer.” Then I concluded: “Let’s learn the lessons unlearned by both the Bush and Obama administrations.”
In the next issue, an economics professor disputed my comments. A year and a half later, I stand by the above quotes.
I am unsure how unparalleled government activism including bailouts of bankrupt companies, stimulus spending for profligate state budgets, cash for clunkers, Fed Reserve pumping money into circulation, national healthcare bill (unread by our Congressmen), 2,000-pages of financial regulations that never once mention Fannie Mae or Freddie Mac (again unread) and the constant anti-business harangues of our leaders have improved the economy. We have seen the continued misallocation of capital, the inhibition of “creative destruction,” high unemployment (let’s hire those hole diggers), government monopoly (the only kind) and, around the corner, hyper-inflation.
Next year I’ll be requoting my March, 2009, letter unless our government geniuses finally institute sound economic principles. See you next year.
Neal Phenes
Chandler Court, Plainsboro
