What we are witnesssing, right before our eyes, is the nightmare that all free market, small government conservatives have feared from President Obama. In the last week, we have had several different reports about only mildly related issues and each one of them points in the same direction. President Obama is determined to turn the United States of America into a Socialist Democracy on the order of France and Sweden.
The most obvious bit of news is the stimulus package. There are several things that are clear from this package. First, this will entail a massive expansion of government. Second, whatever jobs will be created will be created by the government. Third, the deficits will wind up being so high that it will be nearly impossible to cut taxes in the future and thus give stimulus to the private market. As such, the end result of this stimulus will be the government playing a far more important role in our economy than it ever has before.
The second announcement is the announcement that the Obama administration will allow individual states like California to set their own emission standards. Now, it's important to understand that the big three are soon going to need more money. They will of course come to the federal government for more money. President Obama will likely oblige however there will no doubt be strings attached. President Obama will demand that as a stipulation of getting this money the big three go on a serious campaign to build energy efficient automobiles. In fact, they will have no choice regardless. With stringent emissions standards in states like California, the big three will have to or they won't be complying with the law. Now, of course, everyone is in favor of energy efficiency. However, some are more than happy letting the government dictate it, while others would like to see the free market dictate energy efficiency. The Obama administration will be more than happy having the government tell the automakers just how energy efficient their cars have to be.
The last bit of news is the news that the Obama administration is likely to ask for a second round of bailout money for the banks. (that's on top of getting the second $350 billion released). Now, CNBC reports that full nationalization is the least likely option following the second TARP. Of course, ultimately it won't matter much. President Obama has already been on record as being displeased with the lack of oversight of how previous TARP money has been spent. As such, you are sure to see President Obama demand that it be spent exactly as he likes. After all, the TARP money is the government's money. One way or another, once the second TARP is rolled out, we will effectively have banks be nationalized.
So, in one fell swoop, President Obama will expand the size and scope of government exponentially. At the same time, he will effectively nationalize two major industries. The sum total will be an America that is much like the Socialist Democracy of France.
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