The Fed has confirmed that we are officially in a recession. The actual decline in GDP is higher, though. It is at least -1.6%
What caused the Great Depression? Amity Schlaes’ book “The Forgotten Man” suggests that Roosevelt’s “Regulatory Uncertainty” was a big part of the cause. How were businessmen supposed to plan when policies changed from month to month ? The Roosevelt “Brain Trust” could not decide what might work. Some were good ideas, like the CCC which took young men off the street, helped them get into condition and did many worthwhile projects. Some, like the National Recovery Association, were Fascism which was popular in the 1930s.
Now, we face a disastrous shift in the national focus to imaginary threats like Global Warming. This has become all powerful among politicians because none of them know any science and the science people have become dependent on government funding. Fear is a great driver of government money. Climate science has become a rich field through flogging the unskeptics with fear of global warming. It doesn’t matter that there is no evidence of global warming or any of the other alleged threats. The super rich, like Barack Obama, are still buying waterfront estates no matter what they tell their followers.
Here is a proposal that might help.
Central planning always fails, but the utopian visionaries implementing the plans cannot admit that they are at fault. A scapegoat must be found. As a leading example, when Soviet dictator Josef Stalin’s collectivization of agriculture led to mass starvation, the official blame was placed on “saboteurs” and “wreckers.”
Our current-day analog is the centrally-planned replacement of our very large, inexpensive and highly functional energy system, mostly based on fossil fuels, with the alternatives of intermittent wind and sun-based generation, as favored by incompetent government regulators who don’t understand how these things work or how much they will cost. Prices of energy to the consumer — from electricity to gasoline — are soaring; and reliability of supply is widely threatened.
All of which brings our President forth to blame the current price and supply issues in the energy markets on anything but his own administration’s intentional efforts to suppress the functional fossil fuel energy. One day the scapegoat is Vladimir Putin; another it is “companies running gas stations,” who stand accused of price gouging.
One possible solution is to use the states as experimental laboratories.
With federalism in energy policy, we can have New York forging ahead with its “Climate Leadership and Community Protection Act,” and California doing the same with its SB 100 — both of them seeking to eliminate fossil fuels from the generation of electricity, and then to force all energy consumers to use only electricity for their supply. Will that work? If New York and California are successful, they will be a model for the rest of the country to follow. Congratulations will be in order. If they fail relative to other states — that is, if they see energy prices soar, or frequent blackouts or shortages of needed energy — then it will be obvious to all that it was the green energy that failed, and not that there were “saboteurs” or “wreckers” or “price gougers,” who after all could have attacked the other states as well.
Well the Feds allow this? Probably not with the current regime in power.
Fortunately, the red states are not just going along with this kind of thing any more. This will be a critical battleground over the next five to ten years.
We will see after the election. Many Republicans are in thrall to the climate hoax.