America's largest third party is warning against the institution of new government programs in the wake of the current economic crisis. "Government programs tend to linger with disastrous economic consequences," says Libertarian Party spokesperson Andrew Davis.
"Congress needs to exercise extreme caution when considering any new government programs that are intended to act as a remedy for economic decline," says Davis. "The New Deal taught us that government programs die hard, and we're still suffering from the leftovers of FDR's administration."
"Government got us here, and more government will not get us out," observes Davis.
The Libertarian Party blames the current economic crisis on government's intervention in the economy, and worries about the economic impact of exploding government expenditures.
"Out of every four dollars of economic activity, one of those is from government spending," Davis notes. "Not since World War II have we seen the federal share of the economy at this level. This will have severe economic consequences down the road if we don’t look for options to this economic crisis other than more government spending."
According to an article published on Dec. 10, 2008 in USA Today, the federal share of the economy was at its highest in 1943 and 1944, at 44 percent.
"Trying to solve this economic crisis by risking another one in the future is not sound, sensible, responsible policy," says Davis. "There are several other options for economic relief that don't involve increasing government, such as tax cuts, deregulation and an avoidance of anything resembling a bailout."
The Libertarian Party has recently focused on the spending plans of the incoming Obama administration, which includes plans for the largest public works project since the 1950s. The cost is projected to reach more than $500 billion dollars.
"It's understandable that in these hard economic times that people are looking for answers and solutions," Davis explains. "However, history has taught us that government solutions only worsen problems, and do nothing to expedite recovery. The federal government has already put taxpayers at an incredible risk for trillions of dollars with the last bailout. Any further action will just dig that hole even deeper."
"It's absolutely immoral to strap future generations of taxpayers with this level of debt," says Davis.
The platform of the Libertarian Party states "a free and competitive market allocates resources in the most efficient manner," adding that the only role of government in the economy is to "protect property rights, adjudicate disputes, and provide a legal framework in which voluntary trade is protected."
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