The question we ask today is not whether our government is too big or too small, but whether it works.
-Barack Obama
Barack Obama has lost his mind. It seems, unfortunately, that he’s leading a large portion of the country with him. The reason that conservatives care about the size of government is because a small government will not overreach and do colossally stupid things. It will not infringe on the liberty of individuals. A small government has never been an oppressive or fascist government. A small government can always grow if the people demand it.
On the other hand, a big government will think it’s working – until it’s too late. A big government will not shrink at the whim of the people. The beast will not voluntarily give up its power – it must be starved. By its very nature, it will subsume dissent. In a crisis, it will run the risk of moving too fast and doing too much. History has shown us that the worst types of governments are the big ones, not the small ones.
President Obama has done this country a terrible disservice. He, along with the crazed regulators in the House, have pushed forth a 90% tax on bonuses for all employees making over $250,000/year at firms that received bailout checks. These strings-attached are retroactive. When JP Morgan and Bank of America received funds, they did not know that their bonuses would have been taxed. Some are considering returning the funds in order to break free of federal regulation – but why bother? Matt Drudge reports that Obama’s preparing to push legislation to regulate all bonuses, regardless of whether the company received bailout funds or not.
Obama has framed this as a way to curb greed. But he is not curbing greed – he is fundamentally changing the incentives and realigning the national landscape. Obama is not content to merely regulate the practices of the financial industry; he wants to push a salary cap on the I-Bankers and Traders who’ve contributed greatly to the financial innovation and success of American in the late 20th and early 21st century.
Why not first cap the salaries of professional athletes? It seems ludicrous that Alex Rodriguez can make $27.5 million a year playing baseball but that a star fund manager who generates great returns for the pensions and 401ks of working class Americans will be limited to 1/100th of that. Michelle Obama made $300,000 while working for a hospital – if she’d worked for a fraction of that, the hospital could have bought more life-saving treatment for patients. Barack Obama makes $400,000 a year – if he worked for a fraction of that, he could put that money towards programs that work rather than his own pocket (or better yet, he could return it to the taxpayers). President Obama also signed a $500,000 book deal right before his inauguration – if he’d signed for less, he’d have left more money in the pockets of publishing companies – which desperately need it – and a new aspiring author could have also signed on.
I don’t begrudge President Obama or his wife any of their success – but they seem to believe, like many of the super-rich who backed them, that their success had nothing to do with the system of incentives that have been cultivated by the marketplace of opportunity that America affords. It’s a dangerous belief.