Obama Taking Over

|
Posted: Sep 24, 2009 4:47 PM
President Obama lamented to George Stephanopoulos in an interview over the past weekend about silly his critics were for saying "that I'm taking over every sector of the economy." 

Poor Obama.  What on earth would make his critics so... critical?  As David Boaz of the CATO Institute points out, Obama's not trying to take over every sector, just...
---Health care
---Energy
---Local schools
---Banks
---Insurance companies
---Automobile companies
---Compensation at financial firms
---Newspapers; and
---The Internet
...so far.
This president and his Ivy League advisers believe that they know how an economy should develop better than hundreds of millions of market participants spending their own money every day. That is what F. A. Hayek called the “fatal conceit,” the idea that smart people can design a real economy on the basis of their abstract ideas.

This is not quite socialism. In most of these cases, President Obama doesn’t propose to actually nationalize the means of production. (In the case of the automobile companies, he clearly did.) He just wants to use government money and government regulations to extend political control over all these sectors of the economy. And the more political control achieves, the more we can expect political favoritism, corruption, uneconomic decisions, and slower economic growth.