We’ve been told for months now by politicians, especially Democrats, that the U.S. economy is in shambles. Over the past few days we’ve been told that government must act now in a huge way to bail it out before the woes of Wall Street hit Main Street. We’re told that this is the worst economy since (insert year of choice here). There is so much doom and gloom.
But let’s step back and think for a minute. Yesterday we saw a huge drop in the stock market. Today we saw it recover about half that drop. While wild swings are not ideal, the fact that things calmed down and recovered so much today after the hailed bailout plan was voted down yesterday speaks volumes about consumer confidence (which today was reported for September to be up from August’s numbers and higher than analysts expected).
Also, the value of the U.S. Dollar surged in relation to many foreign currencies today, especially major tracking ones like the Euro, Yen and the British Pound. How could that be if our economy is on the verge of collapse and a second Great Depression? Would foreigners want to hold dollars if they were soon to be devalued or made worthless? I think not.
A couple weeks ago John McCain was ridiculed for expressing that while there are problems in our economy it is fundamentally strong. I agree with McCain and applaud him for speaking the truth and not trying to “talk down” the economy for political gain. Think about it: The American worker remains the most productive in the world. We have an incredible infrastructure to facilitate business transactions, labor exchanges and economic development. We have a strong legal foundation that protects innovation, entrepreneurship, private property — including intellectual property — and individual freedom. Where else in the world can you find all these components required for a strong economy?
Yes, there are problems in our economy today (largely the result of bad government policy) but the American economy remains fundamentally strong because Americans are fundamentally strong and innovative. The sooner government realizes that it needs to get out of the way of free and private markets the better it will be for everyone — from Wall Street to Main Street. I think the positive economic response we say today to yesterday’s no vote on the bailout bill should serve as a lesson that government intervention in the economy ought to be limited and restrained.