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Milton J. Madison - An American Refugee Now Living in China, Where Liberty is Ascending

Federalism, Free Markets and the Liberty To Let One's Mind Wander. I Am Very Worried About the Fate of Liberty in the USA, Where Government is Taking people's Lives ____________________________________________________________________________________________ "Extremism in defense of liberty is no vice. Tolerance in the face of tyranny is no virtue." -Barry Goldwater-

Friday, August 29, 2008

Where The Heck Is The Recession?

Although I have noticed that liberals and Democrats are a morose bunch, always seem to see how bad things are, all the deep problems in the world and love to blame ourselves or Republicans, I had a epiphany of sorts on my last trip back to the US; Democrats are whiners and live for moaning, complaining and are looking under every rock and in every utterance for some form of victimization.

And of course, I heard a constant droning on-and-on about the horrible economy and the suffering masses and all of the liberal talking points trying to justify socialization of any risk that faces a human today. This is not my nation.

My nation is this:
I put my faith in people not in the crude machinations of blundering governments
-Milton J. Madison, August 2008
So, with unemployment at a staggering 5.7% (huh?) and starving people everywhere wandering around the streets of the US looking for scraps of food, I am curious why is it that the revision of GDP for the second quarter showed growth of 3.3% up from the initial Commerce Department estimate of 1.9%. Where is the recession for all of these liberal Democrats? I am sure that they see the recession, though, maybe I can say that they are living in their own depression (ha ha ha).

Now for a little Adam Smith lesson. Despite the growth, much of it came from stronger exports. Exports, just of themselves, add nothing to the wealth of a nation. The goods actually leave the country and the utility provided from these goods is enjoyed by others. Yes, the growth is a balancing of the imports that we enjoy (since imports are not include in GDP) and that we used to enjoy without having to work for them. Kind of a gift from the rest of the world to Americans. I guess that they really do love us!

But in the extreme and to illustrate as an indulgence of thought, imagine a nation that exports 100% of what they produce. They wouldn't last long since they would starve since all the food is exported to other countries and the people would live in the elements without clothes or homes. A nation with only money and no goods is a nation that has no wealth. Lots of money but no pockets to put them in and no goods to spend it on. Imagine the converse nation that imports 100% of what they need. They would enjoy the utility of these imported goods without the need to work for them. Citizens would be able to enjoy 100% of their time as leisure and have everything that they need. So what nation would do this transaction where they ship goods to a country without receiving something in return? How about China?

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