At best, Obama has a completely different view of the free market as do pro free-marketers express, and at worst his comments are nothing more than buzzwords insincerely thrown about in an attempt to deceive those who oppose his policies. In either case, the evidence contradicts the spoken words.
The specific statement made to Wall Street, and main street, was that the president is clearly now and always has been a promoter of the free market. Recent actions taken by the White House and previous pronouncements by the president himself indisputably negate such a proclamation. When judging a person's sincerity you must look at their actions, not just their words.
Over the past 12 month period, although most all of these anti-market sentiments go back much farther, Obama has called for and or enacted the following anti-market programs / measures; Government stimulus, equitable redistribution (via tax laws and government programs), higher corporate taxes, rewarding firms who keeps jobs in America (anti-globalization / protectionism), increased union powers, bailouts, cap and trade legislation, and government-run health care. Moreover, on January 8th of this year, Obama stated, "Only government can break the vicious cycles that are crippling our economy". While the list of contradicting anti-market sentiments does not necessarily stop there, this should be sufficient evidence that our president is not sincere in claiming adherence to free market principals. In fact, each of the above programs and claims are the antithesis to a freely functioning market.
Mixed economies are hardly stationary, that is often moving either toward or away from central planning. And, planning under the guise of market mechanisms does not constitute a free market. As Mises eloquently stated, "If people speak of "planning" they mean, of course, central planning, which means one plan made by the government -- one plan that prevents planning by anyone except government". Free markets, of course, work under the mechanism of everyone planning toward meeting their own desired goals through freedom of mutual exchange.
The idea of government interference as a "solution" to economic problems leads, in every country, to conditions which, at the least, are very unsatisfactory and often quite chaotic. If the government does not stop in time, it will bring on socialism - Ludwig von Mises, Economic Policy; Thoughts for Today and Tomorrow.After mentioning a proclivity toward free markets, the president went on to state that in order to encourage and continue "free trade" we must strictly adhere to current trade agreements. The only agreement necessary in a freely globalized economy, or bilateral free trade, is the commitment to allow the free movement of goods and services across borders - that is in addition to upholding laws that protect private property.
Again, we seem to have either a disconnect in the understanding of free trade versus "managed trade", or simply another instance of insincerity. Further evidence for the latter is the recent passing of a 35% tariff on imported Chinese tires. As stated by IBD editorials earlier this week, "This protectionist move, meant to please a single labor union, takes a big bite out of our global trade credibility, making us look like a country that can't compete in global markets".
The imposition of tariffs by governments both interferes with free markets and free trade. We eliminate means of consumer choices by limiting freedom of voluntary exchange. Moreover, actions by our government such as this have the effect of supporting the public's otiose "anti-foreign bias" toward trade imports.
At the end of the day, after the show is over, we seem to be only left with one option. We must accept that, at least for now, we have been deceived, and the only compromise made in Washington will be our economic freedom. Tomorrow is likely not to bring us any closer to freedom from intervention, but rather closer to central planning.
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