Farther Down The Economic Rabbit Hole

Howard Richman at http://jews4huckabee.blogspot.com/ has commented on Treasury Secretary Henry Paulsen’s call for an unlimited feral commitment to the liability and solvency of Fannie Mae and Freddie Mac: Gerald P. O'Driscoll Jr.: "socialism is alive and well in America - thanks to a Republican Treasury secretary."
Though I appreciate his resolve in protecting American security and interest, the Bush administration’s relative opacity with respect to essential philosophical principles is, unfortunately nothing new. Also unfortunately, lucid systematic thinking does not appear to be in the immediate offing. Here is my response to Howard’s post:

It's sad. At this point, one wonders if there is any possibility of removing our collective head from the folly of socialist presumptions, given the extent to which they permeate the organs of mass-communications, broadcast and print.

One hesitates to use the word "socialist," lest we are stereotyped with a disposition of fear and constipation relative to social progress. But, a socialist inclination it is, one which I have watched expand like a blob, through the social consciousness in my lifetime.

We have been watching a crisis in home-lending brought on by the imposition of external objectives into the housing market. And, we wonder how government will palliate the effects of problems that THE GOVERNMENT CAUSED! This, by the way, is a full-time and self-perpetuating liberal occupation: creating problems that they can campaign to fix!

Now, it is clear before our eyes that real estate lending hasd been virtually consolidated under the umbrella of a couple of federally secured institutions. The victims of the consequences will not be just the taxpayers specifically; the entire society will suffer the constriction of economic potential produced by the imposition of extra-market objectives.

Thus imposed, not only is economic potential constrained, but market corrections are muted, and calamity is almost inevitable: really only a matter of time.

In the late 18th century, the first English monumental works of economics were written by Adam Smith. Smith's works were not fundamentally about numerical calculations. They were observations abouthuman nature. Smith was a philosopher. Government distortion of markets restricts potential and encourages risk and thus, failure.

In the meantime we have the consolation of reduced concern about bumping our noses on the closing walls of our economy. Think of a casino where losses are cushioned and winnings restricted.