Opinion> John Stossel> Presidents Can T Manage The Economy

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Presidents Can't Manage the Economy

The presidential candidates have been repeatedly asked how they would "manage the economy." With the exception of Ron Paul, every candidate has accepted the premise that this is something the president of the United States should do.

Or can do.

Nonsense.

Democrats act like the president is national economic manager. Republicans pay lip service to free markets, tax and spending cuts, and less regulation — before proposing big programs to achieve "energy independence," job training and a cooler climate.

John McCain says it's important for government to do something "to sustain our leadership in manufacturing" [http://tinyurl.com/3525fd]. Why? Manufacturing jobs are no better for America than other jobs. Some argue that they are worse. How many parents want their children to work in factories rather than offices? Increasing service jobs in medical, financial and computer sectors while importing manufactured goods doesn't hurt America. It helps America.

The candidates see the global economy as an arena in which countries compete against one another — an economic Olympiad with winners and losers. Politicians love to promise they will keep America No. 1, as if that matters in a worldwide marketplace.

America as a nation does not compete against China or South Korea or Japan. American companies compete against companies in other countries, but that's something else. The purpose of production is consumption, and American consumers prosper when foreigners compete successfully with American companies.

A president who sees the global economy as a competition among nations will be tempted to intervene on behalf of the "United States" and create "good American jobs." That's how governments mess up economies.

McCain says, "It is government's job to help workers get the education and training they need for the new jobs" [http://tinyurl.com/3e3atg]. Mike Huckabee (who glories in public-works projects as a job-creation machine) [http://tinyurl.com/326kby] and Barack Obama talk in similar terms [http://tinyurl.com/2srryu].

That hardly shows confidence in the free market, which, if allowed, would train and educate workers just fine.

But it shows misplaced confidence in the federal government, which, as journalist Jim Bovard has shown, has an unbelievably bad track record at doing it. The endless list of programs, like the Manpower Development and Training Administration, Comprehensive Employment and Training Act, Job Training Partnership Act, STIP, BEST, YIEPP, YACC, SCSEP, HIRE, etc., wasted billions and "distorted people's lives and careers by making false promises, leading them to believe that a year or two in this or that program was the key to the future. … Federal training programs have tended to place people in low-paying jobs, if trainees got jobs at all." [http://tinyurl.com/25b27g].

Sen. Hillary Clinton told The New York Times recently, "I want to get back to the appropriate balance of power between government and the market. … You try to find common ground, insofar as possible. But if you really believe you have to manage the economy, you have to stake a lot of your presidency on it." [http://tinyurl.com/2a3coo]

Notice that she equates government power and market power. That is absurd. "Power" in a free market means success at creating goods and services that your fellow human beings voluntarily choose to buy. Government power is force: the ability to fine and imprison people.

Politicians who talk about managing the economy ignore the fact that, strictly speaking, there is no economy. There are only people producing, buying and selling goods and services. Keep that in mind, and one realizes that government action more often than not interferes with the productive activities that benefit everyone. When politicians propose regulations to fix some problem, they should ask if some earlier intervention created the problem and if the new regulations will make things worse. The answer to both questions is usually yes.

The economy is far too complex for any president — no matter how smart — to manage. How can politicians and bureaucrats possibly know what hundreds of millions of individuals know, want and aspire to? How can government employees fathom what trade-offs to make in a world of scarce resources?

They can't. That's why free people are more prosperous than unfree people.

Presidential candidates should promise to keep their hands off the economy.

John Stossel is co-anchor of ABC News' "20/20" and the author of "Myth, Lies, and Downright Stupidity," which is now out in paperback. To find out more about John Stossel and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate Web page at www.creators.com.

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Comments

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Why does the media ignore the Fair Tax when it is the best legislation yet, that could help the people and the US economy. With our current system we are just digging a deeper hole. Does the media ever talk to one another to open up and review and promote the ideas rather than adding to the pessimism.
Call to America
I am a supporter of Mike Huckabee for President and I support the Fair Tax. Huckabee has challenged Arizona Senator John McCain and Texas Senator Ron Paul to a debate. Former Arkansas Governor has also written Senator McCain a former letter challenging him to a public debate. McCain is capitalizing on the majority of his delegate wins from the Democratic States.
McCain has won approximately 390 delegates in Republican States. All the rest of McCains delegates are from the Democratic states.
One million voters have voted for Huckabee in the Republican states he has lost. Over one million voters have voted for Huckabee in the Republican states he has won. That is over two million votes in just the Republican states for Huckabee.
The mass majority of voters know about the Fair Tax and are strong supporters of the Fair Tax. There is legislation in congress H.R.25 that if passed would replace the Federal Income Tax System with The Fair Tax. You would be taxed on what you spend and not on what you earn. The Fair Tax would be good for the people, businesses, economy, foreign trade, and the United States. If you really care about a chance for a level playing field, read up on the Fair Tax. You can go to FairTax.org and you can find the Fair Book at a library. Currently this is a grassroots effort and Presidential candidate and former Arkansas Governor Mike Huckabee is helping to promote it in most of his campaign speeches and at some of the debates.
Even though the Fair Tax would help our economy, the media and columnists ignore it like the plague. Currently the media and talk show hosts are giving John McCain a free ride. There are important issues that still need to be debated by the remaining Republican candidates. It is too bad that media is caught up in a frenzy with liberal candidates that are competing for President of the United States. The Democratic candidates are out to defeat President Bush, well President Bush is not a candidate. The Democratic candidates are going to get rid of President Bush tax cuts, well those are American citizens tax cuts.
The voters would really appreciate a debate between the remaining Republican presidential candidates. It may help to earn back some respect that has been lost.

Comment: #1
Posted by: RoninFl
Thu Feb 28, 2008 2:22 PM