Samizdata

A conservative friend of mine in the USA sent me a link to an article in Weekly Standard called The Sector Formerly Known as Private: how Obama intends to use corporations to effect social change… and I must say that it somewhat surprised me. The following is largely based on the letter I sent him in return.

We’re beginning to get a sense of what the next four years will look like. It won’t be a conservative era, that’s for sure. Nor will it, despite appearances to the contrary, be a reprise of the Clinton era. Bill Clinton’s version of economic liberalism meant slightly higher tax rates on income and capital, a slightly more burdensome regulatory apparatus, lower deficits, and a commitment to free trade. The public sector didn’t meddle too much in the private sector. It was content, for the most part, to sit back and enjoy the tax revenue that the tech boom poured in. Obama’s liberalism will be different.

Let us gloss over the absurd American use of the word ‘liberal’ when they actually mean ‘illiberal’, but my response to “We’re beginning to get a sense of what the next four years will look like” was… we? Was article author Matthew Continetti not listening to Obama during the campaign? Has he not examined the copious record of the vile man’s public statements ever since he entered politics? Nothing Obama is going to do should be unexpected. For Obama to do anything unexpected he would have to slash public spending and roll back regulation.

Is it really only now dawning on some people that Obama ain’t Bill Clinton? But guess what, do you actually think McCain would have shrunk the state and lowered the regulatory interference that not so much led to but actually mandated the sub-prime melt down? McCain is the one who is Bill Clinton, just with zipped flies and less charisma.

Let the whole stinking system of patronage politics burn I say because nothing is going to change for the better until the piles of garbage and rats in the streets reality rubs people’s faces in the true cost of voting in a political class who thinks wealth is something that is created by political actions rather than markets. Hell, it does not matter what I think, just look at the numbers as the economy slows, then contracts, and at the same time state expenditure actually increases. Do you really have to be an Austrian School economist to see the implications of that?

Never was there a better time for openly authoritarian regulatory statists to be in power, right when the global economy is on the edge of an abyss. There will be no economic growth to mask the expansion of the state this time. Personally I am looking up at them standing on the edge and chanting “Jump! Jump! Jump!”

Just at the point where the state’s tax take will nose dive because of the economic slow-down, the USA has elected someone who is going to massively increase ‘public’ expenditure. The money will come from where exactly? Tax the middle class? That kills consumption and the economy tanks even more. Print more money? That fuels inflation and the economy tanks even more. Screw it out of productive sectors of the economy? That makes marginally productive businesses go bust and makes them all cut their labour forces and increases unemployment… and the economy tanks even more. My guess is that by the time he is done Obama will do all of the above. It does not matter that the media will love The One all the way down to the crater, the pain will be spread around so widely no amount of propaganda will be able to shift the blame. If the so called ‘right’ cannot turn that into political success a few years from now then they are worthless fools.

A lot of people are going to get hurt and that is just too damn bad. Has the GOP actually run a free-market candidate for president since Barry Goldwater? Well Reagan was at least half way there, but only half way, but I give him a free pass because busting the Soviets actually was worth the money he spent. The GOP is as much to blame as the Democrats for where the USA is now, so a plague on both their houses. The situation now is exactly where ‘pragmatic’ and ‘realistic’ voting gets you. Why anyone who wanted a smaller state would have turned out and voted for McCain was beyond me… and of course many did not, they stayed home in droves and quite right too.

Guys, you have been voting for the lesser evil for so long you may have lost sight of the fact that you have been voting for evil, just a tiny bit less than the other guy. Well no more easy options, no more putting the day of reckoning off for some point in the future… the day of reckoning has arrived and I for one am delighted. Do your worst Obama… to quote Lenin’s inspiration Nikolai Chernyshevsky, “the worse, the better”. Do not think of it as a disaster but rather an opportunity to actually create an opposition worth voting for. Never has there been a better time to destroy the political careers of really large numbers of Big State Republicans.

That is what I think. Have a nice day.

Unlike many, well, most of my compatriots, I am not filled with a deep sense of gloom and foreboding at the prospect of the most left wing president since FDR gaining the Whitehouse. In truth, I can see many reasons to think it may well be a far better outcome than if a Big State Republican like McCain won.

Of course Obama will bring an avalanche of policies that will be truly appalling and quite wicked, of that I have no doubt, much like his predecessors in office in that respect. As the global economy continues to come unglued, everything Obama does to deal with the mounting crises will in fact make things worse. Civil liberties will be hammered, all in the name of ‘fairness’, and the flood of regulations pertaining to every aspect of economic life will grow into a drowning ocean.

And that is actually the good news.

Why? Because in truth the Republicans under John “I support the bailout” McCain would scarcely have done much better. The economic global meltdown is only just starting to roll: if you think the sub-prime mortgage crisis was the biggie, just wait until you see the fallout from the fun and frolics of the impending mess in other areas, such as debt swaps. This is all going to get worse, a lot worse, and Obama is going to do absolutely everything to dig the holes deeper. Looking back on this period ten to twenty years from now, the Republicans crying into their beer tonight will be saying “thank Christ it was not us in office then”.

The lesser evil is not going to win this time and much as it may not seem that way now… or any time soon I suspect… in the long run this has a far far better chance of leading to the rebirth of a genuine pro-liberty, pro-market political culture, something which the gradual incremental surrender of recent times made impossible (such as the ‘pragmatic voting’ of people who want a smaller state for Republican candidates who ended up growing the regulatory state).

Many will find the glee of the statist left over the next few days and weeks hard to endure, but to be honest I have been walking around with a grin all day. Finally the era of gradualism is over and the masks are going to come off. The USA has voted for statism and it is going to get exactly what it voted for at a juncture in history where it will very quickly be impossible to hide the cost of those votes.

Obama is not the start of a new era, he is the death knell for the old one.