Tag: Janet Yellen

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tax policy too much government

For a Thousand Years

government, monster, politics

Time for a gas-tax holiday. 

When the people lie prostrate, when the people groan under heavy burdens, when the people just can’t take it anymore — and when an election is coming up — that is the time for politicians to relieve everyone’s burden.

A bit.

Treasury Secretary Janet Yellen favors considering a temporary gas-tax holiday to emulate some of the states. Reviving the Keystone oil pipeline — no, not something to consider, she says. But she’s okay with a brief gas-tax break.

Let’s do better.

I propose a millennium-long gas-tax holiday, government-barriers-to-drilling holiday, regulation-of-all-industries holiday. Under my plan, government gets all the way out of the way of all markets so we can all be as prosperous as possible, whether or not a big economic crisis is underway.

But would there be any such crises — long-term and intractable economy-wide crises, I mean — if my plan were enacted?

When government does everything possible to injure the economy and prevent recovery, it takes a long time for markets to bounce back from shocks. If ever.

Un-fetter the markets, though, and economic actors would be able more rapidly to adjust to major jolts. If gas imported from overseas plummets, producers could then quickly adapt by expanding production. They cannot readily do so now because government imposes so many barriers.

The politicians’ preference for modest, namby-pamby reprieves are not only substantially weak, they send the wrong signals. They get doled out as if government were doing us a special favor . . . by not beating us up so badly for a very little while.

We need freedom. On an ongoing basis.

This is Common Sense. I’m Paul Jacob.

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free trade & free markets national politics & policies too much government

The Woman Who

The good news? Federal Reserve Chair Ben Bernanke is getting the boot. The bad news? His replacement looks no better.

Last Thursday, the Senate Banking committee voted to place Janet Yellen as head of the Federal Reserve. The full body of august solons is expected to confirm this nomination, electing her as head honcho and chief cook (kook?) at the nation’s quasi-private/quasi-public central bank.

I am sure there are folks who look on this passing of the baton with a sort of patriotic piety. I know there are Democrats who rejoice in a banker referred to by Reuters as “a monetary policy dove who puts more weight on driving down high unemployment than the risk this will ignite future inflation. . . .”

Of course, the Fed has already pumped trillions into the system. A burgeoning employment boom has not resulted. To say the least.

Reviewing the current situation, and the likely appointment, economist Gerarld P. O’Driscoll, Jr., reminds us of the big truth about those who push at the Veil of Money: “the Fed is not capable of stimulating job creation, at least not in a sustained way over time.” What the Fed has succeeded in doing, in recent years, is prop up our benighted federal government’s continuing crisis of over-spending: “Congress and the president have been spared a fiscal crisis, and thus repeatedly punted on fiscal reform.”

Problem is, no one really believes debt accumulation or monetary back-up make for a sustainable policy: at some point, O’Driscoll tells us, rising interest rates will “precipitate a crisis.”

I wouldn’t want to be in charge at the Fed when that happens.

So, some sympathy for Ms. Yellen.

This is Common Sense. I’m Paul Jacob.