Article Image Powell Gammill

Letters to the Editor • Economy - Economics USA

Market Intervention Is Always Necessary But Not Obama’s Kind Of Economic Intrusion

       Liberty is dying everyday because worse than President Barack Obama we mishandle our belief in individual freedom.

      And so is the daily wounding of the Libertarian cause, especially in the hands of libertarian extremists that represents Don Quixote, the radical hero in the romantic era of Spain who jousts the windmill everyday because like this character of La Mancha created by Miguel de Cervantes, they perceived that Order, intervening regulatory authority or the Government is that mortal enemy we have to contend with if we want to live as free the Chinese’s 4-winds in our free enterprise society.

      The way how this consuming belief in Obama’s notorious market intervention is similarly and passionately argued in public, reminds me of a perfect landing in the wrong airport.

      In economics, I have written in so many publishing venues that it is so easy to prove although there is no need to prove, that WITHOUT Order or authoritative intrusion that regulates or balances the weak and strong forces that are inter-acting with one another in our free enterprise society, our free market system will not or cannot survive. Recently published is my letter to the editor titled: Free Market Needs Keynes Law Just As Civilized Society Needs Government And World Order. The quick link is here:


       Consequently, so many times did I explain this economic dictum quite lucidly, that in our capitalist society, Greed, the weakness of Man, deliberately poisons and kills Equilibrium, the anvil of productivity and economic growth, which is actually the starting baseline of free competition in our capitalist society. If we contrast “Keynes law” besides government regulations, as a necessary intrusion to stabilize the economy, to what is happening in dictatorial societies, i.e., Fascism or Communism, the Government kills human greed in those alternative societies by taking away the opportunity to freely compete.

       That’s how this hell of difference comes out to the fore very often, more so when we debate how life is lived in different organizational dimensions or in parallel social landscapes [divergent societies]. Probably, killing corporate greed is where Obama’s market intervention may be credited this far out of his two-year regime – and that is killing the greed of one industry, and promoting the gluttony for profit of another industry.  As president, maybe he is the worst economist this country had ever produced but in infamy he remains on top of the list of the most notorious politically correct presidents the Democratic Party had ever smuggled to the Oval Office.

      On record, quite a number of very outspoken revolutionaries for change suffering a chronic paranoia after they realized quite late that supporting Obama was a traumatic mistake – street-like marchers now on tilt with this badly screwed up way of thinking -- that the only way to defend themselves against the imagined threat of the New World Order or against this visualized tyranny of the Federal Government that Obama is heading is to become suicidal or to run berserk and pull the trigger on the crowd to leave a macabre message. Those lucky to be still alive literally killed their own liberty and freedom behind bars.

       This lost command of almost extinct libertarian commandos in their own illusionary jungle of belligerence and hostility, argue their cause by calling to arms the public at large, believing that only at the end of the barrel of the gun can they defeat or abolish the Government and get rid of unwelcome intruders like Obama. 

      Well, it is sad for me to state the bad news that Don Quixote’s windmill represents this faceless Government, this phantom enemy that exists but could neither be hurt nor injured, and even it is relentlessly attacked and bombarded to death, could never die.

      Let’s leave this argument to juvenile delinquents to grow up with, and step up to the next level of cerebral inquiry.  If market intervention is a basic requirement for the survival of our free enterprise society, would that not be an ironical absurdity when it is free and yet not free at the same time?

      We have noticed lately that market intervention by the Government is oftentimes taken to task, and at worst, attacked by the Libertarian left that think through their fiery emotion rather than think rationally by capitalizing on the strength of their natural intellectual endowment. Blinded by insuperable anger, they uselessly slash empty air with their sword of protest.  It is such a blatant waste of energy that satirically, maligns the nation’s fuel conservation program!

        With government incursion in the market and the question is raised whether the interference is good or bad, the right answer depends on what kind of regulatory intervention is hitting the marketplace. Is it a necessary intervention or unnecessary intrusion?

        A government-dictated set of rules interfering in the function of the market that is being abused by controlling corporate powers because of greed for profit, is definitely a necessary intervention. In the opposite side, over-regulation is an unnecessary intrusion. It is in this opposite side of intervention where Obama drives the nails in the coffin of his political career.

       In this bifocal view of what intervention is, market incursion could either be good or bad, and therefore with any of them or neither of them, makes no difference. But that is a lazy argument that does not say anything at all. There is no such thing as “free market” in the real world without any intervention of some kind.

       Inversely, there is no intervention unless it is either necessary or unnecessary. But indifference to know what’s happening in our free market system is showing a lack of knowledge or capacity to know.  And that’s true to many “intellectuals” that had never been formally schooled in Economics. Their good commonsense in economics is known as “intuitive economics”. Unfortunately, instinctive economists and schooled economists come from different worlds. For purposes of comparison, they cannot even be categorized as strange bedfellows because one is an absolute embarrassment to the other!

      Nationally implemented federal and state legislations that break up monopolies or break up control of the economy or regulate the deleterious effects of diseconomies and externalities are essential parts of the United States huge push-button economy that there is no need to waste our time in describing them here in details.  The uninitiated firebrand in the libertarian frontier does not want to think and understand those details anyway and it is just a waste of time and space to discuss them here.

       Suffice it for me to say that many examples of unnecessary market interventions can be cited when the Government responded to the exigencies of the present financial debacle. When President Obama introduced his bailout policy in the troubled auto industry with conditions that labor unions should have a stronger voice than management on how to run a financially stricken corporation that badly needed government monetary infusion, or when he imposed a pre-conditioned requirement that only those automakers that produce small, inexpensive, low-cost, energy-efficient vehicles should receive government aid or subsidy in order to stay alive and compete in the market, that’s over-regulating the playing field, a kind of socialist intrusion which to our free enterprise society is unnecessary or unwelcome to become part of our free world. 

         Automobile consumers that can afford to buy luxury cars and love to use them as part of their way of life, should not be dictated on how to live their lifestyle by forcing them to buy and use small and inexpensive cars that they do not like or never used before. This kind of arbitrary socialist market interference would probably bring joy to the poor consumer, but at the same time it would cause emotional damage and mental injury to those deprived of their free choices in life.   

        Furthermore, corporations operating under those cited intrusive, unnecessary over-regulations could not compete in the market in the only way they know or compete in the strongest manner they should, while at the same time it also kills auto manufacturers whose specialization in competing freely in the market is to produce automobiles that do not fall within Obama’s dictatorial specifications.

         On the other hand, under-regulations had given the likes of Fannie Mae and Freddie Mac a free hand to screw up our mortgage and banking system for profit that led us to this financial meltdown.  Therefore the important message in this historic fault we are currently experiencing is that government intervention should only be to that extent where it is required or necessary. Less or more than what is necessary, would not only destroy the system but would also lead us down the road to perdition where we are now.  To unlearn this lesson, next time, we might not survive this kind of folly.

      Up to this point, what I have just made clear for the better understanding of the American public is that our capitalist enterprise society dictated by free market forces with a modicum of government intervention cannot in any way, be a socialist democracy that Karl Marx had envisioned the world to be in his Das Kapital, or what Marx and associates thought it should be in their “Communist Manifesto".  

     In other words, in this country, Obama cannot succeed or even hope to succeed where Karl Marx and communist founder Friedrich Engels, great communist revolutionaries Leon Trotsky and Vladimir Lenin had failed.

      Notice carefully that these market distortions that I have just described are politically- motivated economic externalities. Here, I am putting on the line the years of not only my graduate studies in economics but also my experience and reputation in the academe. As a form of economic distortion, the essence of externalities whether in production or consumption is that the cost or benefits are not reflected in real market prices. That’s because in this case, Obama just made an unsound politically-based, not profitably-economically-based sound decisions when he decided to intervene in the market. As a matter of principles, the intervening Obamalocology [Obama craziness viewed by millions of Americans] was outside the natural law of economics.

       Since price-wise it was not an accountable manipulation of the economy but simply a political exploitation of our free enterprise system, to fault Keynes law in this regard and to guillotine this socialist president for his economic crimes – like a stab at the back of this nation’s capitalist society -- has to my dismay, led me to one of the most shocking discoveries: I saw so many dogs barking at the wrong tree!  No one feels safe with this pack of wolves milling around in an attack mood.

       But more than this, I share my greatest apprehension with you with this warning: A radical socialist politically correct president like Obama is always a dangerous threat to the law of economics. A lawless economics created by a free market manipulator-exploiter as powerful as the President of the United States, could breed this monster called Global Depression that kills a lot more than World War II.