As the external threats of an overtly oppressive and bellicose Iranian regime and the possibility of Iraq succumbing to terrorist forces or sectarian fragmentation continue to weigh on the American consciousness, it is important that we not be distracted from the domestic policy failures that will play an important part in the reduction of American influence in the world. Let’s go back to the days when a novice president said that the “time for action is now” and if that we did not act then “crisis will turn into catastrophe.” It was under these pretenses that the new administration reached into the dusty shelves of macroeconomics libraries and pulled out an economic theory conceived more than 70 years ago… so much for change. The idea was that the government could stimulate the economy by printing more and more money until the economy recovered, regardless of how the money is spent. Well, despite being completely absurd the idea that more borrowing and spending beyond one’s means was the solution to an economic recession caused by excessive borrowing and spending beyond one’s means, it turns out the the so-called “Stimulus” package rammed through Congress by the Democrats in power has actually not done its job. What the Stimulus has stimulated is special interests and the national debt, it looks like change hasn’t come to Washington after all.

First off, the administration propaganda-machine estimated that the Stimulus would create or save 750,000 jobs by early August. The reality is that for the month of May, unemployment rates increased in every state except for Nebraska. No new massive influx of the government-touted “green jobs” or “shovel ready” jobs. It was in manufacturing, in Michigan, where the highest unemployment rate increase occurred. Manufacturing jobs were hit hard by the repercussions of GM and Chrysler bankruptcies, despite the government spending billions of taxpayer dollars on these companies. So even when we stimulate individual companies, they still fail… why spend the taxpayers’ money to begin with? One thing is certain though, the UAW, a Democratic-voting union, was handed over 55% stake in Chrysler and the government has taken a majority stake in GM. Unions and the government are taking over the free enterprise system… all at the taxpayers’ and the consumers’ expense. Ain’t it grand?

Second, instead of stopping or slowing the recession, we have seen what we expected to see from a free market correcting itself, some economic sectors improving, some bottoming out, and some getting worse. One thing is certain though, companies such as GM and Chrysler would have gone into bankruptcy much earlier with much less cost to the taxpayer if the government had simply not intervened or not “stimulated” them and today we would have been talking about a resurgent American auto industry. Instead, we had months of uncertainty that only hurt the markets and an eventual outcome that put the government in the driver’s seat in terms of running these companies.. with the American taxpayer holding the bill. Just yesterday, as an example of how the Stimulus is only stimulating government size and power, we saw the stock market take a hit, with the Dow Jones dropping 201 points, after the World Bank estimated that the world economy would contract 2.9%, more than the previously projected 1.7%. I guess the world economy doesn’t feel stimulated yet. Add to that laws such as the new bill that gives the FDA overwhelming power over the tobacco industry, allowing the federal agency to ban flavoring, control advertising, and control the ingredients that go into tobacco products. This bill was signed into law by a guy who is himself a smoker, it could be that he’s trying to get the federal government to support his efforts to quit. The regulation of even advertisement, beyond merely requiring truth or warnings, shows that the government regards the American public as little more than children who need to be mommied and watched over lest we do something they think is “bad.” Government intervention in our daily lives is growing under the current administration.

Third, one thing that the Stimulus is not stimulating is the talent at firms that have accepted federal money. A brain-drain is currently going on at banks and financial institutions that have accepted, sometimes by force, stimulus dollars. This means that America, historically the beacon for talent from all over the world, is losing to other countries who have no such restrictions on compensation. The administration has appointed about 20 different “czars” that regulate areas from the auto industry to the amount of money executives can get paid. John McCain has joked that “Obama has more czars than the Romanovs,” but in truth, the expansion of executive power is no joking matter, not in this administration nor in the previous one. The executive branch has no business trying to supervise the compensation of employees at companies, especially in the cases where they had to take federal money against their will and have not been allowed to repay that money. Excessive government intervention will lead to the weakening of America’s economy.

The real threat to America is an overly ideological stance when it comes to government. It is practicality that Americans want and need. Right now, the administration has made its position clear: it stands for increased government intervention in the economy. Many may feel that the term “socialist” is unfair, but when you have an economic policy that is based on the redistribution of wealth, like Obama explicitly expressed during the campaign and during his presidency, it is a “socialist” policy. On the other hand, even the previous administration expanded government and redistributed wealth to some extent, despite its claims of being conservative. What this means is that Americans must judge a government by its actions, not only whether it is “liberal” or “conservative,” and unfortunately for us, both liberal and conservative administrations have conspired to increase the size and power of government, each for different reasons. Americans must stand for freedom… the freedom to live one’s life without government intervention, the freedom to succeed or fail in life as a result of our efforts and talents, the freedom to choose our own path… Affiliating with Republicans or Democrats or whatever party should only reflect that basic desire for freedom. One thing is certain though, giving government the power to control the free enterprise system, intrude on our personal life, and give away our tax dollars to special interests compromises our freedom… we must take care not to willingly give away our freedom simply because we “like” the current leader. A cult of personality is no substitute for a healthy republic.