If you want to understand Democrat fantasies in the absence of financial constraint or common sense, read Reed Hundt’s book, “In China’s Shadow.” Reed Hundt is a permanent member of the American political class, a Yalie, a partner in a high-powered law firm, head of Bill Clinton’s FCC, and a member of Barack Obama’s transition team.
Free money is Reed Hundt’s great idea. Muggins, that is you me, the hard-pressed American taxpayer, should buy everyone from Nome to Tierra del Fuego a pension, healthcare, and education. By these means, the United States will win in the economic competition with China that furnishes the title of his book and a small fraction of its other content.
No, it’s not a joke. People with power and influence really think this way.
this is actually a great book that everyone should read. ignore those ridiculous comments above
The comments, far from being ridiculous, are measured and restrained. The book about which I made the comments would be ridiculous, were it not so frightening that people who think this way now have unfettered power over economic policy.
I made two charges in my blog post.
1) The book has little to do with China. This is unarguable. Only about 17 pages of text out of 137 actually analyze Chinese policies that make the country so competitive. Much of the rest is historical recapitulation of the Clinton administration in which Hundt served, as a kind of golden age.
2) Reed Hundt’s great idea is free money for everybody in the western hemisphere courtesy of the American taxpayer. This is also unarguable. Here is the key paragraph:
“The United States can increase and unite the production and consumption of North Central, and South America. Instead of bringing Mexican workers into the United States by means of inadequate border policing, the United States can tie the Mexican and other Latin economies tightly into a common American market. The United States would benefit by creating social benefits for citizens of other countries in the Americas. Instead of dismantling its own social securities system, it could create such plans in all the countries of the Americas at a level commensurate with the needs in these countries. For example, it could contribute matching funds for helping citizens of Latin American countries start savings accounts that will be invested in Pan-American stocks and bonds. Personal accounts for all the Americas would greatly expand the prospects of all U.S. firms.” (p. 98)
The leading lights of the party in power simply do not recognize scarce resources as a restraint on their economic policy fantasies. We see it in this book, and we see it more dangerously in policy initiatives such as Health Care Reform and Cap and Trade.