CATO analyzes Obama's State of the Union speech.

This is a very impressive video done by CATO that breaks down Obama's speech and focuses on how realistic Obama's promises are, discusses specific legislation and highlights the good aspects of Obama's administration.


In particular, focus on the education aspect of the speech.  As you may be aware, higher education costs are climbing at astronomic rates and other than insurance premiums are probably the fastest rising costs in America.  Because Americans hold collages and universities in slightly higher regard than blood sucking insurance companies these costs are seldom discussed.  However if there is one thing you learn from this blog is that when costs stop making sense, look for government intervention as an explanation.  Nothing distorts free market prices faster and more efficiently than the heavy and reckless hand of government. 

Higher education is no exception and the constant grants, breaks, subsidies, incentives and programs stemming from both the federal and state levels play a significant role in out of control college costs.  Obama has made an interesting promise to further exacerbate the situation.  He plans to forgive debt after 20 years, entirely!  Apparently the basic economics class where they introduced "there is no such thing as a free lunch" was skipped by young Obama and this shows.  So now all the taxpayers have to take on the debt of every individual who decides to slack on his or her debt responsibilities and since Obama wants to cap the debt payment at 10%, this is entirely possible!   Wait, there is more!  If the individual goes into public service, the debt will be forgiven after 10 years.  Laugh out loud moment because with almost 10% of the American population in the public sector and growing, this is exactly what this country needs, MORE public employees.  Good lord, someone pinch me. 

As discussed in lessons from Shays' rebellion, this is another classic government diagnosis/cure phenomena.  Higher education costs are hurting people, so the government steps in and provides a solution, this solution oddly enough raises more costs and so it goes until all government aid is taken over by the federal government or worse yet, all private institutions become federally run institutions.  If you thought that our current educational facilities do not produce enough liberals, just you wait!

The portion discussing bank reform and regulation should make your blood boil and in case you are skeptical, the permanent bailout window to the banks is indeed real under the guise of harsh reform.   Wall St. and Washington are tied at the hip and with financial services representing 30% of the GDP, no reform will punish Wall St. 

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