Will increasing bureaucratic cost, regulatory overhead and entrepreneurial disincentives hurt the economy?
*Texas Straight Talk, by Congressman Ron Paul, January 9, 2012:
'This week, partisan games in Washington reached a fevered pitch as
Congress acted to prevent recess appointments, yet the administration
made them anyway. Congress has been gaveling into session for
less than a minute every three days for the express purpose of
technically staying in session. The 40 second "pro forma"
sessions may strike supporters of the President as obstructionist, but
Congress was using its clear constitutional authority and playing by
the rules. Frustrated, the President simply disregarded the
Constitution, and appointed Richard Cordray as head of the new Consumer
Financial Protection Board, and Sharon Block, Richard Griffin, and
Terence Flynn to the National Labor Relations Board anyway.
Playing fast and loose with the Constitution only gets worse with every
administration. Because of the dangerous precedents being set,
both parties would be wise to defend constitutional bounds, no matter
who crosses the line. Defending a constitutional overstep always
comes back to haunt them once power changes hands.
The Obama administration expressed extreme frustration with the
Senate's refusal to confirm its nominees. The truth is, for
better or worse, these are the cards the voters have dealt
Washington. The Constitution, with its system of checks and
balances, not only allows for gridlock, it practically guarantees some
degree of it. The Founders knew that gridlock can be a very good
thing. If nothing can be agreed upon in Washington, harm to the
country is limited. Considering the Obama administration's ideas
of what caused our problems, and how to solve them, the wisdom of the
founders certainly shines through today.
According to the administration, the new Consumer Financial Protection
Board is an absolute necessity. Another bureaucracy, with more
rules and red tape and paperwork and procedures is supposed to protect
the people from bad actors in the marketplace. On the contrary,
the answer was staring us in the face in late 2008 when these bad banks
and corporations threatened to go belly-up. The laws of economics
were working to remove corrupt companies from the market forever, to
never abuse or defraud another customer or depositor or shareholder
again. Bankruptcy is the ultimate consumer protection, and what
did Washington do? It protected the banks instead, and created
more bureaucrats.''
*This information is solely a highlight of the opinion of a third-party publication and is incomplete. Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.
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