There is value in keeping things simple and to the point

I saw this from Star Parker today, and I think she makes an excellent point about the role of government:

There is no way around the fact that freedom and prosperity only exist when government protects property, and this includes our money.

I would add to this, “protects the lives of individuals, and respects contracts,” as well as property, but she is on to something. Since the financial crash of 2008 our government has taken on the role of the protector of our economy, even if the majority of Americans has not wanted it to do this. It has propped up companies, at best providing a cushion to tide them through their restructuring, and at worst given them a false sense of value. It has been focused for too long on the conceit that it can produce favorable outcomes, and when I say this in particular, I mean it far beyond this discussion. It goes above and beyond protecting property. Protecting property means protecting it from harm inflicted by fraud, thieves, saboteurs, and vandals–external threats, not harm that is self-inflicted. What the government has been presuming is that it can save us from ourselves.

Even though the Federal Reserve has wanted to deny that it is devaluing the Dollar, it has been doing so by creating money and then exchanging it for Treasuries, to finance our dramatically expanding public debt, and/or toxic mortgage securities. We haven’t been feeling the effects of this so much, because banks have not been lending that much into the private economy, but someday this will change. This policy has had effects abroad, which we have been feeling indirectly. Nevertheless, this is not protecting our property–specifically, our money!

What I’ve been increasingly realizing is that if we are to get back to prosperity, our government should stop trying to save us from ourselves, stop trying to manage the economy, and get back to its raison d’etre, and the Fed should adopt a new policy of protecting the value of the Dollar. If both were to do this, it would likely cause some scary and unpleasant results in the short term, but if people can see where the real problems are in the economy, then they are more likely to be resolved.

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