Centralized Government Control? Doesn't Work
President Obama and Democrats in Congress continue to push to establish sweeping government control of huge sectors of the US economy: autos, banking, health care, energy (via cap and trade legislation and centralized control), even student loans (see my post here). Well, let's take a look at the actual performance of a nation with almost a century of experience in the theory and practice of such centralized economic control. From Bloomberg News today, September 14:
Bank Rossii cut the refinancing rate to 10.5% from 10.75% (note, double digit) and lowered the repurchase rate charged on central bank loans to 9.5% from 9.75%, effective September 15. Russia's benchmark refinancing rate is the second highest in Europe, after Serbia's and Iceland's who pay 12%.
Russian output shrank a record 10.9% last quarter after a decline in global trade undermined demand for Russia's commodity-reliant exports of raw materials from steel to oil....Consumer prices rose an annual 11.6% in August.
If we continue on the Democrats' desire for centralized control, we will have far more to worry about than just the debt we're leaving our kids and grandkids.
Cross-posted SCSU Scholars - comments welcome.
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