No “Cash for Clunkers” for You!
By Lee Hemen
October 15, 2009
Thomas Sowell recently wrote a very good article on the fact that in an economy everything is interconnected. He writes that “It means that a huge increase in the demand for ice cream can mean higher prices for catchers’ mitts, among other things.”
He illustrates his premise for us by explaining that “When more cows are needed to produce more milk to make ice cream, then fewer cows will be slaughtered and that means less cowhide available to make baseball gloves. Supply and demand mean that catchers’ mitts are going to cost more.” He is correct and few people realize this simple truth of supply side economics.
Ever since the Reagan years, Democrats have tried to demonize supply side economics, but anyone who has ever owned a business or who has worked in sales in any form understands this simple truth. People will buy your product, sandwiches or whatever, if it is well made and cost effective for them to do so. And, when you sell more product, you can then hire more people to produce your product, sell it, and thereby expand your business into new markets. Then, you can hire even more people and do the same thing over again! In fact, because you sell more, it creates more jobs in other areas of the economy because more people have to produce the materials for you to make your product and all of it has to be transported and warehoused!
However, when you impede the market place by placing unnecessary governmental restrictions such as taxes or mandated fees; or produce a false market through regulated buyer incentives like the governmental regulated cash for clunkers; or when the government forces your business to make you sell your product at a lower price – then you have created an unsustainable marketplace. You therefore have to reduce your costs by laying off employees or reducing the quality of the product you produce by cutting corners to make it cheaper. You may even have to move your factories to places whereby you can hire employees at a lower cost to you. This is exactly what will occur when the Democratic healthcare plan is enacted.
What voters, and the unemployed, need to be made aware of is that it was Democrats in Congress that created the financial mess we are in. They were repeatedly warned by Senators McCain and President Bush, but to no avail. Rep. Barney Frank, the Chairman of the Banking and Finance Committee, even went so far as to call anyone who tried to sound the alarm as being “ignorant” and refused to have any discussion of it. Democrats controlled Congress when the mortgage industry was forced into making these loans or face Congressional hearings and deregulators investigating their every move. Democrats control Congress now and are forcing the takeover of our economy through mandated governmentally controlled healthcare. The results will be catastrophic for all of us.
What makes this scary is that Congress is messing with one quarter of the economy with your healthcare. This will cost us trillions of dollars and effect every single area of our lives. When small businesses, which are the backbone of the economy, are forced to either pay for healthcare for all employees “or else”, they will opt out and allow the Government to pick up the bill. Big businesses will follow suit in just a few years. All businesses will face the same costs as the auto industry did, in trying to pay for out of control union benefits, and the results will be the same. So you, the tax payer, will have to pay for your healthcare and that of others as well to the tune of trillions of dollars. You think that Social Security is a mess now, just wait until the Federal Government has control of your healthcare. And, there will be no bailout or cash for clunkers for you. You, if you are still working, will get stuck with Obama’s healthcare bill.
Pastor Lee Hemen has been the outspoken pastor of the same church for 25 years in Vancouver, WA. He writes regularly on spirituality and conservative causes and maintains several web blogs. This article is copyrighted © 2009 by Lee Hemen and is the sole property of Lee Hemen, and may not be used unless you quote the entire article and have my permission.