Forum Post: The Destructive Keynesian Continuum -Part 1

It is, at times, difficult to wade through all the subtle changes that have occurred in this country, particularly the truly drastic changes that took place during the 20th Century. The problem is that there is simply not much information about these subtle, but drastic and transformative changes that were implemented in our government and country but there are hints.

These hints can be found in various publications, documents and news sources from the period from the 1930's to our present day, but the interpretation of these hints requires connecting dots that are not always apparent. One area in particular went through a massive and relatively misunderstood metamorphosis beginning in the 30's and today we remain trapped by those changes in the very foundational structure of our economic system.

It was, without a doubt, a revolution one that completely overturned the order and role of our government in our lives. This revolution came in the form on a complete economic transformation that promoted the intervention of government into the markets, but that was just part of the story; for this transformation allowed the government to expand its ability to intervene into every area of the lives of the American People.

Under the cloak of saving free market capitalism this revolution subverted the very foundations of the free market and throughout the process it has been instrumental in subverting the Constitutional foundation of individual freedom within this country. The Great Depression opened the door to the imagination of economists and politicians; since that time it has run wild.

The government came to the rescue during the 1930's and has been in the rescue business ever since. What the American People didn't know was the heavy price of that rescue; most are still unaware of the actual price that they have paid since the government came to the rescue or the price they continue to pay. They say that nothing is free and that has never been as true as what we have been wooed to relinquish in return for what is purported to be economic security.

We look at what occurred during the 30's and think that the government only intervened in the markets, banks and industry, but the truth is that this was only a portion of the rescue plan that revolutionized the foundational economic and political principles of our country. The other part of this rescue plan involved the government playing a direct role regulating all income, savings, and investments and spending.

Of course, we think we are in control of our income, our savings, spending and investments, but the reality is that the government has implemented controls through various subsidies, taxation, as well as government ownerships and partnerships in various sectors of the economy. Even wages and prices are manipulated through this system of government management. For decades we have been fed the line that we live under free market capitalism, but it is impossible to compare what this government has done over the past three quarters of a century and believe that it remotely resembles free market capitalism or freedom, for that matter.

With the goal of full employment and capacity production, this government began to take a path that would radically change the entire complexion of not only the political economy, but the social economy of this country. In the process, the structure of our government was also transformed into a system of bureaucratic administration responsible for the management of this massive economic machine they created. Once this system was created it could not be abandoned without massive economic and social disruption, the political price for such disruption would simply be too high a price for the politicians to pay therefore, it continues. Of course, it is not without its benefits, but those who benefit are not the workingmen and women of this country.