America – Land of the Non-Political Economy

It’s refreshing to be reminded about how little politics matter in our economy. How do we reflect on this? By looking at how influential they are in other countries. The latest example is in view at our biggest “competitor”, China. In a current NY Times report we see how political the economy really is. The Chinese (mainland, not Taiwan) economy has no free distribution mechanisms, there is not process nor established procedure for distributing opportunities, or rather they must be greased by and for the benefit of the oligarchy. In contrast, in America we have today (5/18/2012) a view of Facebook as it goes public. This company was invented by a few guys, funded by a bunch of endorsers over the years, and finally built into a web powerhouse, all without any political intervention, rather by a raw effort to build stickiness.

All this is to say, as we hear partisan bellyaching about the economic policies of one side or the other, remember that as much as the President and Congress can do structurally to set the rules, in the day to day they do very little vis a vis the economy. They by and large do not manage opportunities; they do not have any real control of gas prices, the labor market, or any other facet of activity. For that matter neither do our business moguls. If they had their way natural gas (ergo our heating bills) would be priced much higher today.

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