Filed Under: 2012 Elections, 2012 Iowa Caucus, Featured, Fiscal Policy, Government Spending, History, Primaries, Republicans
“I have little interest in streamlining government or in making it more efficient, for I mean to reduce its size. I do not undertake to promote welfare, for I propose to extend freedom…..And if I should later be attacked for neglecting my constituents’ “interests,” I shall reply that I was informed that their main interest is liberty and that in that cause I am doing the very best I can.”
- Barry Goldwater, Conscience of a Conservative
Perhaps more than any other politician of the twentieth century, Barry Goldwater captured the essence of the American spirit – ferocious independence. This spirit depends upon the Constitution for its life and energy. Without our Constitution, our nation is nothing more than another geographic location; nothing but more real estate.
The Goldwater wing of the Republican Party has been asleep for decades, as the economists espousing Keynesian and Chicago School theories on the benefits of inflation became trendy and the American political aristocracy banished the Constitution to the wilderness, to be replaced with a holy mission to spread democracy with armed drones and replace civil liberties with state-managed dependency – what Barack Obama once referred to as “positive rights.”
Our nation is bankrupt; the unemployment rate is falling, not because people are finding work but because people are giving up and staying at home. While we still import millions of barrels of oil every day, we now export refined gasoline. As the Federal Reserve printed money to inflate the tech bubble, the housing bubble, five military conflicts, the bailout, the wealth conflagration referred to as the Stimulus, and the Treasury bonds sold to raise the money to pay the interest on the bonds sold to pay the interest on the bonds that were sold by Lyndon Johnson. The M2 supply (the number of dollars floating around out there) has more than doubled in the last ten years; as a result each individual dollar is now worth less. By doing nothing more than holding Canadian currency, the Canadian people now have the purchasing power to essentially outbid us for our own gasoline. This is what inflation looks like.
Prior to 1964 no American politician had ever referenced inflation in a political advertisement, and then Barry Goldwater did it. As Lyndon Johnson proposed to pay for a war in Vietnam and the Great Society programs of increased social spending, Barry Goldwater condemned the entire charade as a swindle, a hoax, and a fraudulent promise of perfect prosperity – if we print enough money, we will all be rich.
As the 1960’s gave way to the 1970’s, the bills began to fall due, and the government realized that its promises exceeded it’s abilities. With little more than a speech, Richard Nixon took us off of the gold standard. As it turned out, William McChesney Martin (then the Federal Reserve Chairman) had printed so much money to pay for Johnson’s war on poverty that the gold reserves were no longer adequate to back it up. Bye-bye gold standard.
Hello fiat currency. Since 2001, the Fed has expanded our money supply by upwards of $6 trillion dollars. They distributed it to the government – to pay for social programs that are necessary, not perhaps for our national strength, but for the reelection of our politicians, as well as to banks so that they could write mortgages to people who couldn’t pay them back. Nobody cared if the mortgages went bad; the banks had sold them to Fannie Mae, created by the government in 1939 specifically to buy mortgages from banks. Then, in 2008, the Federal Reserve printed the money needed to buy to bonds the Treasury needed to sell in order to fund the bailout of Fannie Mae and the banks.
In his pamphlet “Conscience of a Conservative,” Goldwater blasted what he called delusional dreams of the “Jacobins and leftists.” We in the conservative movement are not supposed to be allowed the luxury of idle utopian dreams, be they making the world safe for democracy, or making our domestic economy so wealthy (through housing and stimulus) that we simply wouldn’t need to save money, manufacture things, or export anything other that Treasury bonds. These goals are fantasies; they have led us to quagmires of humiliation, poverty, and degradation.
Will anyone dare to ask Barack Obama why, when the United States was consistently running trade deficits in excess of $40 billion per month, he believed our problem was a lack of demand? Will anyone ask why he simply assumed that if we paid people to buy new (foreign-made) cars, then our economy would improve? A trade deficit, by simple, logical definition, is the consumption of goods in excess of your ability to produce. Stimulus accomplished nothing more than the further impoverishment of the nation. Who will challenge Barack Obama on this issue?
Enter our Republican candidates, most of whom seem to think that we desperately need to print money to pay for a war with Iran. Is this really the best we can do? A choice between inflationary games to pay for socialism, and inflationary games to pay for a war that we cannot otherwise afford and could easily be prevented? Only one candidate warned of the inflationary bubble in housing as early as 2001. Only one candidate understands the fundamental problem of our economy – too much debt; too little production. Too much urgent government initiative; too little freedom.
“Extremism in the defense of liberty is no vice; moderation in the pursuit of justice is no virtue.” Barry Goldwater was roundly condemned as an extremist for these sentiments. We live in an age of bankruptcy, fear, and disappointment. Candidates of firm conviction, shrewd talents, or competent judgment are frequently passed over in favor of the candidates with the darkest nightmares, the most delusional promises, or the most artificial of Cheshire Cat grins, with their insistence that spending borrowed money will make us rich and powerful, and if you disagree then you are clearly a cynical malcontent, playing politics at a time when action is required; that is American politics in the 21st Century.
The Goldwater wing of the Republican Party – fanatical adherents to the Constitution, ferocious nationalists, resolute defenders of liberty and individual rights- has been asleep for decades. Without our Constitution, the United States of America is nothing more than real estate. The Goldwater wing of the Republican Party is awake now; and they demand to be taken into account. So far, only one candidate has.
Photo Courtesy of Dave Davidson, his fabulous work can be viewed at http://prezography.blogspot.com/
About the Author
Mr. Waechter is an attorney and a recent graduate of Drake University.
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