DOUGLAS HOLTZ-EAKIN / AUGUST 1, 2014 REINVENTION – NOT GOVERNMENT INTERVENTION – DRIVES OPPORTUNITY

Reinvention – Not Government Intervention – Drives Opportunity
Photo courtesy of iStockPhoto

Opportunity lives in America because of its commitment to personal reinvention. Our forefathers streamed into America for nearly four centuries to leave behind a life of urban squalor to become a frontiersman; to transform from a menial serf to a skilled middle-class craftsman; to put behind a life of crime for a future as the pillar of a growing community; and, of course, to exceed the American dream, to leave poverty behind and achieve wealth in America.

There are a lot of opportunities in the trading market which when is untapped, it becomes an opportunity for another trader. Here you need to have to hunt for an opportunity for they are spread over in huge numbers especially when you are with systems like the crypto CFD trader. 

The powerful global allure of America is rooted in the freedom for social, cultural, and religious reinvention.

To some extent, this freedom to reinvent is woven deeply into our culture and the story of our economic success.

To some extent, this freedom to reinvent is woven deeply into our culture and the story of our economic success. Historically, the U.S. offered an unparalleled access to raw materials and open land, the ability to start new enterprises and retain the material returns to one’s work and effort, and easy access to expanding markets. The American economy grew and transformed itself at a remarkable pace, and permitted its population to follow suit.

At the same time, however, each era demands policy reinvention as well. For example, it is time to rethink our approach to business cycle policy.  Economic reinvention is at the heart of business cycle recovery and economic dynamism.  In the depths of an economic downturn, entrepreneurs take advantage of cheap, used capital facilities and idle workers to launch them in new uses. The productive supply-side reinvention leaves behind the broken economic model and unveils a creative venture of greater social value.

The failure to appreciate this core economic dynamic lies behind the failures of big-government attempts to micromanage the economy. Discretionary Keynesian stimulus is built on the notion of propping up the existing firms, labor market relationships, and purchase patterns. In the aftermath of the Great Recession and Obama Administration stimulus efforts, new-firm creation dropped dramatically in the U.S. and the recovery proved modest at best. This is not a coincidence.  Interfering with the core mechanisms for reinvention harms the capacity of the economy to transform itself for the future.

It is time to return to fiscal policies that focus on long-term growth and avoid the temptation for activist policymaking.  The failure of activism was one of the lessons of the 1960s and 1970s, during which both fiscal and monetary policy were regularly adjusted in an attempt to target full employment and low inflation.  The result was exactly the opposite – sustained high inflation and high unemployment.  This lesson was forgotten by Republican and Democrat Administrations alike, as discretionary policies were attempted in 2001, 2002, 2003, 2005, 2008, and 2009.

In addition, the past two downturns have been the result of the bursting of asset bubbles, the dotcom bubble of the late 1990s and the global credit/housing bubble in 2007.  Why should one expect Keynesian responses to work when the business cycle is not an income-driven, industrial event?

Flexible markets, a ceaseless commitment to innovation, the capacity to organize and reorganize skills, risk capital, and technologies are the mechanisms of economic reinvention. Personal freedoms, religious freedoms, and small non-intrusive government are the mechanisms of social, cultural, and personal reinvention.  Our policy future should be built on these principles, and not on top-down, one-size-fits-all regulatory and discretionary fiscal approaches.

America in 2014 is not the America of 2004, 1984, 1914, 1814, or 1714. But the commitment to the opportunity to be better yet again remains true.  Our policies need to be updated to preserve the notion that reinvention is not just a possibility, but an important part of what drives the United States forward.

Douglas Holtz-Eakin is the President of the American Action Forum, and a former Director of the Congressional Budget Office

EMERGING LEADERS JOBSBig Government Chases Entrepreneur Out of Chicago

Big Government Chases Entrepreneur Out of Chicago

, 
JOBSHere’s the Government’s Progress in the ‘War on Poverty’ in One Easy Chart

Here’s the Government’s Progress in the ‘War on Poverty’ in One Easy Chart

, 
JOBSA Conservative Vision for Civil Society

A Conservative Vision for Civil Society

, 
/ 

A CONSERVATIVE VISION FOR CIVIL SOCIETY

  
JOBSA Conservative Vision for Civil Society

Americans are increasingly customizing their lives. Many companies cater exclusively to niche markets that have specific needs or desires – and often use the Internet to create virtual communities of connoisseurs.

And it’s no secret that Americans love options. That’s why companies are always falling over themselves to create more of them for consumers. Think about the dairy aisle of your local grocery store, where a few standards have been replaced by a profusion of choices. There’s organic, soy, lactose-free, almond: You have choices you didn’t imagine ten years ago.

While most everything in our lives is becoming leaner, more flexible, and more customizable, government is heading in the exact opposite direction

So why is it that while most everything in our lives is becoming leaner, more flexible, and more customizable, government is heading in the exact opposite direction? Partly it’s the nature of government. If people don’t like one of the products in the milk aisle, it gets pulled from the shelves. Government doesn’t work that way, which is a reason not to give it too many tasks.

In America, most of life happens – as the conservative intellectual Yuval Levin puts it – in the space between the individual and government. We call that space civil society, and we fill it with families, churches, schools, hospitals, cultural organizations, professional associations, businesses, clubs, and on and on. All of these groupings must constantly adapt: learning from trial and error, building on what works and abandoning what doesn’t.

Often it is small, lean, and agile groups that thrive in this environment – which also suits Americans’ inclinations. Monolithic and cumbersome institutions have left us more and more dissatisfied. People who once relied on Big Media institutions to deliver the news now gather information from a large variety of sources. Big Labor is shrinking, too. Private-sector union membership has been declining for decades. Americans also express less confidence in Big Business, which is meeting increasing skepticism when it seeks government favors.

Yet liberalism has an ideological commitment to large institutions where experts provide technocratic solutions to the country’s problems. This top-down sensibility has made liberalism and its institutions reactionary and sclerotic, intolerant of dissent, and unable to adapt.

Liberals took a health-care system that was already too centralized and bureaucratic and made it even more so. We now have, by law, “essential benefits” that cannot be tailored to individual needs. The new health-care law crushes choices, most dramatically with its unprecedented individual mandate.

This isn’t what people want. Obamacare has not had a day of popularity since it was signed. A law that was supposed to bring people back into the big-government fold is pushing them further out of it.

Conservatives have a different vision for civil society. We are not interested in a one-size-fits-all ideology at odds with the temper of the times. In the past we have had considerable success with policies that responded to the country’s needs with decentralized and market-oriented solutions. And we can do it again.

When Reagan ended the gas lines that had become a weekly problem in the late 1970s, he didn’t do it by creating a new board to address the problem. He lifted government control of gas prices and trusted the market to adapt. Welfare reform is another conservative success story. We took a program that was not working and changed it. We gave state governments freedom to manage their caseloads and insisted only on the consensus American value of work.

In recent years, however, conservatives have too rarely followed these examples. In many cases we have not even tried to explain how decentralization, choice, and trial-and-error could work to address the problems that worry Americans.

In Room to Grow, a recent book from the YG Network, a group of conservative policy analysts explains how this approach could improve our economy, our health care, our education, and much more.

Carrie Lukas’s chapter, for example, tackles the perennial question of work-life balance. Refreshingly, she doesn’t assume that there is a single correct answer to that question. She does not assume that all mothers want to have full-time jobs and use commercial day care, or denigrate those who do. She argues instead for policies that encourage flexibility and choice.

Likewise Andrew Kelly takes on the challenge of higher education. Americans want affordable and effective post-secondary options that can help them gain the skills they’ll need to achieve economic independence. Kelly outlines an ambitious reform agenda that would break up the higher education cartel, reinvent the student loan program, require return-on-investment transparency, and provide support for high-quality apprenticeship programs. In contrast to the prevailing assumption that everyone should go to a traditional collegiate institution, the guiding principle of Kelly’s proposals is that people need a range of options that suit their needs and talents.

Smart politicians are promoting innovative policies that apply conservative principles to today’s challenges. Senators Mike Lee and Marco Rubio seek to make the tax code more pro-growth and pro-family, reform the safety net so that it rewards hard work, and provide educational opportunities for a 21st century workforce.

Too many Americans have felt for too long that conservatives don’t care about them. By advocating promising conservative policies to help them solve their own problems, we can show that we do care – and that we understand how modern life works.

We can stand, in short, for opportunity: the opportunity to live their own lives. That’s something we intend to extend to all Americans.

–April Ponnuru is the policy director for YG Network.