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Jim Cook

 

RUNAWAY SOCIAL SYMPATHY

Every once in a while I switch the TV channel from Fox to CNBC to see what the liberals are saying.  After listening awhile I get a deep sense of hopelessness and foreboding for our country.  The most important thing for the left is giving money to people.  They are happy to see the growth of food stamps, disability payments, housing subsidies, free healthcare and all the other welfare benefits.  They utterly fail to see the damage it is doing to the recipients.  Whole cities that once flourished have deteriorated into rotting eyesores populated with shambling hulks of chemically dependent drones.  These people are no longer employable.  They have become incompetent and helpless and the liberals can’t see that it’s their doing.

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The Best of Jim Cook Archive

 
Best of Michael Pento
July 28, 2009
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“Real growth comes from empowering the private sector. The best way to achieve this is to allow the private sector to control more of their own money. Cutting taxes and reducing public spending serves to shrink the size and scope of government while at the same time increasing the power of individuals. It should be obvious why it is most important for individuals to have control over the allocation of their resources. Only you (the private consumer) know best what needs to be produced and what needs to be consumed. That’s because the individual risks his or her own capital, whereas the government risks other people’s money. Since government spending originates from a central planning authority, it is not subject to the vetting process of those who have the most to profit or lose from that decision. The result is an inefficient distribution of resources and a misallocation of capital.

“Likewise, only the private sector is best at creating job growth. Government created job growth exists by fiat and is not subject to the profit and loss analysis of the private sector. The jobs that are created by private sources (those who have the most skin in the game) have a predilection to be economically viable, sustainable by the free market and are accretive to economic growth. A government dictated source of employment is not subject to market forces. Therefore, the relevant question is not asked; can the job exist without government support or does it add to the creation of new capital?

“True growth does not come from a stimulus package or from doubling the monetary base. Placing the economy further into debt or expanding the money supply beyond its capacity for growth only assures future tax increases and inflation.

“That is why all the talk about how many jobs the government will create or save is nonsense. Job growth has been anemic for the past decade because it has been based on the servicing of asset bubbles. What we need is a stable currency and low inflation so that economic growth is balanced. It is also inane to speak about how the public sector must increase spending because the private sector is deleveraging. The private sector is deleveraging because market forces necessitate that debt levels contract.”


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Michael Pento
Chief Economist
Delta Global Advisors
800-485-1220
mpento@deltaga.com
www.deltaga.com
With more than 17 years of industry experience, Michael Pento acts as Chief Economist for Delta Global Advisors and is a senior contributor to GreenFaucet.com. He is a well-established specialist in the Austrian School of economic theory and a regular guest on CNBC and other national media outlets. Mr. Pento has worked on the floor of the N.Y.S.E. as well as serving as vice president of investments for Gunn Allen Financial immediately prior to joining Delta Global.