A Couple of Thoughts on a Strange Turn of Events
James Glassman’s fascinating article in the September issue of Commentary, “The Failure of the Liberal Econonic Experiment?”, is only partly about economics. The other part is about Jim Glassman’s sense of perplexed surprise.
From June 2008 to June 2009, Glassman notes, output suffered the worst decline since 1946, and from 2008 to 2010 unemployment doubled. The American people should have turned against the free-market policies that were then in place. They didn’t. Americans have instead turned against the interventionist policies the Obama administration has enacted. It’s as if a drowning man, thrown a life saver, spat at it.
When the financial meltdown occurred, it seemed almost certain that Americans would judge that the conservative economic experiment of 1981-2008 had failed. Instead, they seem to be leaning in the opposite direction—toward a conclusion that it was the liberal economic experiment of 2009-10 that has failed.
This conclusion is not being warmly embraced so much as reluctantly conceded….Still, when you consider that a repudiation of free-market capitalism…appeared almost certain when the crisis broke, we should be both humbled and thankful for this strange and constructive turn of events.
A strange turn of events indeed. Conservative policy wonks knew that the life saver Barack Obama insisted on throwing to the American people was a fake, of course, but how were the American people to know? No Republican of national standing decried Obama’s policies. For that matter, you could scarcely name a Republican of national standing in the first place—no counterpart to Ronald Reagan now exists. The mainstream press? The press supported Obama overwhelmingly. You have to give credit, I think, to Fox News and conservative talk radio—but only partial credit. The audience for those outlets numbers in the low double digit millions at the very most.
Which leaves whom? Which leaves the American people themselves.
During the economic expansion of the last quarter century, Americans have developed certain habits. They know how to start businesses and invest in mutual funds. They’ve lost their fear of changing jobs. They’ve learned that new technology makes us richer, not poorer. Whereas FDR presided over a population with large elements that Marx would have recognized as a proletariat—urban, uneducated, largely propertyless—Barack Obama presides over a nation of investors and homeowners. Obama and his economic advisers have their Keynesian theories, but that’s all they have. The American people have actual experience—a quarter of a century of life with free markets and limited government.
Maybe the rejection of Obama’s policies shouldn’t have surprised us conservatives nearly as much as it has. Maybe we lacked faith in our own tenets. Free markets don’t merely produce goods and services. They nurture freedom itself.
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Jun '10
Re: A Couple of Thoughts on a Strange Turn of Events
Thank you, Mr. Robinson.
"Maybe the rejection of Obama’s policies shouldn’t have surprised us conservatives nearly as much as it has. Maybe we lacked faith in our own tenets. Free markets don’t merely produce goods and services. They nurture freedom itself"
I sure hope you are correct about "the American People". As one of those people, I know you are right about me
Re: A Couple of Thoughts on a Strange Turn of Events
You and me both, cdor.
And if you'd like a little more on what the American people are thinking and feeling these days, click through to today's segment of the Uncommon Knowledge interview with Gov. Haley Barbour. When it comes to interventionist policies, he's convinced, Americans have had it about up to here.
May '10
Re: A Couple of Thoughts on a Strange Turn of Events
Peter Robinson:[..] You have to give credit, I think, to Fox News and conservative talk radio—but only partial credit. The audience for those outlets numbers in the low double digit millions at the very most.
Which leaves whom? Which leaves the American people themselves.[...]
Fox News, talk radio, and, yes, Ricochet, are so vital because they help those who are engaged to formulate coherent, informed arguments, which are then delivered to the relatively disengaged millions--that is to say, independents--who tell friends, who tell friends, etc. Conservative media's influence, therefore, extends far beyond its immediate audience, in the same way that the NYT's editorial page has for so long.
"Ricochet," BTW, is the perfect metaphor in this sense.
Re: A Couple of Thoughts on a Strange Turn of Events
Very true. I suspect that many of them may also be experiencing flashbacks to Jimmy Carter. A weak economy, exhortations to sacrifice from a government that seems neither inclined nor capable of controlling itself, the virtual disavowal of our allies while projecting weakness to our adversaries, and the seeming abandonment of the values that made us great. Interestingly, I'm seeing a few stories about Obama's greying hair and the observation that the job may just be too much for one man. They said the same things about Carter, if you recall. I suspect part of the swing in public opinion may be due to a surprisingly long memory about just how bad things can get when statists take over.
Aug '10
Re: A Couple of Thoughts on a Strange Turn of Events
To extend upon your post here. I think there are a couple of other contributing factors that have contributed to the public's dissatisfaction with the "interventionist" policies of the current administration.
First, fewer Americans are members of unions than were so in the past. This is particularly true in the private sector. What this has meant is that while the administration has talked about all of the capital it has infused into the economy, its focus on supporting union jobs has undermined the administration's pr goals. The money going to public unions is seen as pay offs by the American people and as "non-intervention" intervention. If the stimulus money is being paid to ensure that public employees stay employed it isn't benefiting the majority of workers.
Second, the administration paced the stimulus so that it would "maximize" electoral value. This was supposed to be stimulus summer because so much of the stimulus was delayed until now due to electoral concerns. Even granting Keynesian principles, waiting to stimulate the economy is foolishness. The administration thought that stimulus was a flow that could be turned on and off with instant effects. They were wrong.
Americans can see this.
Jun '10
Re: A Couple of Thoughts on a Strange Turn of Events
Never underestimate the inherent good sense of ordinary Americans.
Aug '10
Re: A Couple of Thoughts on a Strange Turn of Events
It's important to note that we haven't really had free markets in this country, or the western world, since before World War I. The Federal Reserve, the income tax, regulations by the wagon load, and social engineering that would choke a horse, have distorted markets beyond recognition. Labor hasn't been truly free, nor has capital, compared with the way they were in 1900; when America boomed the way China does today.
I wouldn't want to live in such an unregulated environment myself; would have joined the moderate Progressives back in the day; and would have voted for Teddy Roosevelt.
If we'd stopped there, about 1908, and perfected what we had then, we'd be vastly better off. Or failing that, preserved the policies of Calvin Coolidge's administration - 1923 - '29. Things could have been salvaged.
I know what you're probably going to say, "Are you crazy? What about the stock market crash?!" Or, "Things had to happen the way they did..."
Ah, so you believe in fate? It was all foreordained that FDR would become a dictator?
I'd be happy to engage in a debate. But this forum is too small for that.
Re: A Couple of Thoughts on a Strange Turn of Events
Nathaniel makes very good points, and Scott says something about Ricochet so generous, and says it so well, that Rob and I are going to feel tempted to print it out and frame it. But, Dave, really. Jimmy Carter? I'm way too young to remember.
Re: A Couple of Thoughts on a Strange Turn of Events
"Free markets don’t merely produce goods and services. They nurture freedom itself." That's the essence of Thatcherism in twelve elegant words, Peter. I applaud you for joining me in going Green.
Jul '10
Re: A Couple of Thoughts on a Strange Turn of Events
Excellent post.
Re: A Couple of Thoughts on a Strange Turn of Events
Ah, Green Claire, you and I are going to get along just fine on Friday. Just fine.
Re: A Couple of Thoughts on a Strange Turn of Events
Whipper Snapper....
Re: A Couple of Thoughts on a Strange Turn of Events
I'm with you, River, pretty much all the way. And you know which three portraits of presidents Ronald Reagan chose to hang in the Cabinet Room, don't you? Lincoln, Eisenhower...and Coolidge. And the folks at the White House had to look darned hard for a portrait of honest Cal. Read the story--which is marvelous, by the way--here.
Jun '10
Re: A Couple of Thoughts on a Strange Turn of Events
Maybe Americans actually realize that all bills originate in Congress, and if it's tax legislation, it starts in the House. That's been in Democrat hands for a long time--since the beginning of 2007. Presidents suggest legislation, but they don't create the final draft. They especially don't if they're in the other party.
May '10
Re: A Couple of Thoughts on a Strange Turn of Events
Peter Robinson:
Maybe the rejection of Obama’s policies shouldn’t have surprised us conservatives nearly as much as it has. Maybe we lacked faith in our own tenets.
What surprise? Americans didn't lose faith in capitalism and regain it. People hold the same views about the market today that they held years ago. There has been an awakening, but it's a fresh look at politics, not economics.
We're just slapping ourselves for buying the "too big to fail" nonsense that got us started down this road. We've been reminded that politicians on both sides of the aisle are mostly liars and opportunists.
Jul '10
Re: A Couple of Thoughts on a Strange Turn of Events
It’s as if a drowning man, thrown a life saver, spat at it.
Some of us can tell the difference between a lifesaver and an anchor.
May '10
Re: A Couple of Thoughts on a Strange Turn of Events
So, conspiracy buffs, do you believe that the Dems thought that if George Soros pulled enough strings and tanked the economy we'd all rush thankfully into a socialist mindset?
Jul '10
Re: A Couple of Thoughts on a Strange Turn of Events
EJHill
So, conspiracy buffs, do you believe that the Dems thought that if George Soros pulled enough strings and tanked the economy we'd all rush thankfully into a socialist mindset? · Aug 31 at 3:25pm
Two words: Cloward-Piven.
Aug '10
Re: A Couple of Thoughts on a Strange Turn of Events
What is also surprising is that this is an international trend. Citizens in Europe, Canada, and other countries have reacted skeptically to large stimulus and other government interventions. I have always believed in the power of free market ideas and ideals. What has changed is that we are now in a world of vastly expanded information bandwidth, absent the old gatekeepers of public opinion. Blogs, discussion boards, cable television, and online journals are allowing for a rich marketplace of ideas, governed not by elite guardians of opinion, but by a bottom up process of aggregation and community agreement. The cream rises to the top. It's no surprise to me that the cream contains a healthy dollup of free enterprise and only a pinch of government frosting.
Jul '10
Re: A Couple of Thoughts on a Strange Turn of Events
I read your link about President Coolidge. " If supply-side succeeds in some fashion...." If? In some fashion? President Reagan crushed Keynes.