“Well, here’s another fine mess you’ve gotten us into…”

Watching our state and local politicians react to the current economic crises that we face in Michigan, St. Clair County and in Port Huron is like watching a re-run of the old Laurel and Hardy Movies. Invariably, they find themselves in a mess of their own making, and they try to fix the problem by applying the same kind of logic that got them into trouble in the first place, only to make matters worse…and then they do it again, and again. It would really be funny, if it didn’t hurt so much.

Perhaps a better metaphor would be that of a meddling mother, trying to “make things better”. They cannot resist getting involved. Their meddling is well intentioned, born of a mixture of love and concern and overwhelming guilt of being responsible for their child’s happiness and welfare. Perhaps they feel a sense of guilt for having created a whining and dependant child. Nevertheless, their solutions only make things worse – especially when the child is forty years old. And they repeat the process, again and again.

Another metaphor: “I am not an economist, but I play one on TV”. It’s amazing to me why these politicians yearn for TV time. If I were going to practice brain surgery, without being trained, I wouldn’t want everyone watching. Apparently they think that their good intentions are sufficient license to practice what they don’t know.

Socialism is an economic system doomed to failure. Yet our politicians resort to this “cure” for every economic ailment. Our economic problems are a result of forty years of government involvement. They create plans, they create regulations to force compliance to their plans, and then they raise taxes to pay for their plan. When their plan fails, they add more people, more regulation, and more taxes, to implement their improved plan. And they do it again and again.

When will they learn to just butt out? Forty years ago, it was generally accepted in economic circles that central government planning was essential for strong economic systems. Wrong. In the past forty years, there has been a re-birth of free market economics. The Nobel prize winners in Economics, like Milton Friedman, have been those demonstrating a better understanding of a natural economy. Too bad no one told the politicians.

Well, not all politicians are ignorant of economic realities. Soon after they were freed from generations of living under socialism, the newly formed government of Estonia found itself with 1,000 percent annual inflation, 35% unemployment, and a decaying infrastructure. The young prime minister (32 years old), did the unthinkable – he admitted that he didn’t possess the capability to manage their way out of the mess. Further, he acted as if it were not his responsibility to nurture every ailment resulting from this mess. Instead, he asked for advice from Milton Friedman. They implemented a flat tax of 24%. No corporate taxes on profits re-invested in Estonia. They cut regulations. Today, their economy is the envy of Europe. It has realized the fastest growth and renewal of all the former Soviet states. People are living in a free society that allows them to make their own plans. And it allows them to keep their money to implement and be responsible for their own plans. Recently, the tax was lowered to 20%.

Shame on us. Shame on Governor Granholm, with her “Economic Recovery Plan” and the new taxes to pay for it. Shame on the St. Clair County Board of Commissioners, who wish to involve themselves in the “incubation” of new jobs, while recently squandering millions of taxpayer dollars on the mismanaged jail project. They too, will be coming with new taxes to pay for their new plan. Shame on the Port Huron City Council. They cannot resist in meddling in every aspect of life. The tax mess they have created will keep honest developers far from our city borders. If the above mentioned politicians really want to improve the economy – stop looking to socialism for your economic solutions and butt out of our lives. Cut taxes, cut regulations, scrap your plans and learn something from Estonia.