Mitt Offers His Sage Advice

Once again, Mitt Romney, a successful businessman and former governor of Massachusetts, offers his insightful advice about how to best stimulate the economy. His theory toward economic policies is much more Smithian than Keynesian. His tagline is Stimulate the Economy, Not the Government.

Quoting the CNN article: “In the final analysis, we know that only the private sector — entrepreneurs and businesses large and small — can create the millions of jobs our country needs. The invisible hand of the market always moves faster and better than the heavy hand of government” (emphasis added).

Lastly, in a letter to supporters he stated, “This is a time of hardship and uncertainty for millions of Americans. Unfortunately, the new President and the Democratic Congressional majority seem more concerned with stimulating the government than stimulating the economy.”

We need to stimulate the economy by freeing up more money from the clutches of our inefficient government. Our government needs to gain inspiration from Smith and Friedman (as far as arguing for smaller government), not Eva Perón’s welfare program or her husband Juan’s economic policies that led to the downfall of the Argentinian economy (please read the comments to this post for more about Argentinian economics).

2 thoughts on “Mitt Offers His Sage Advice”

  1. I’m not an expert on Juan Perón or his policies but I have lived in Argentina and I have observed how they (the Argentines) deal and relate to government. Generally Argentines hold the attitude that government does all the (real) work and everyone else just lives their own lives making a meager living. Any significant commercial enterprise is usually associated with the government. There are a few rare exceptions where major commercial enterprises are not owned or “overseen” by the government but if there is ever any problem the people always turn to the government to fix it, and if the government won’t (or can’t) do it, then nobody does it.

    Now getting back to Juan Perón. This type of attitude, as far as I can tell, comes from Perón and the Perónistas. Not all Argentines think this way but the governing majority do. Part of the conflict going on right now in Argentina stems from the fact that the Perónista government wants to control industry and “redistribute” the wealth that “belongs to all Argentina”, while the minority who are opposed to this want more of the “invisible hand of the market” to fix things.

    So if people want to know the impact of policies like the current Democratic stimulus package, then they should look at the state and culture of Argentina to see the impact that these type of policies have had. After taking a good look then we can see if that is the type of society that we want. Personally I do not want that type of society as it truly restricts freedom and prevents governments and people in general from solving problems. It gives the power to solve problems to one group of people and they rarely have the will or impetus to solve the problem and solve it completely.

  2. Thanks for the great comment. You know a lot more about Argentinian economic than I do. 🙂

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