The Planned Economy - Comrade

A subtle shift has occurred, although I am not sure I am seeing it yet. The Federal Government has always encouraged certain investment behaviour through our tax system. However, we have always been free to choose to invest to our tax benefit or ignore the tax benefit. This last year we have seen the Federal Government decide how money should be invested in our economy in a significant way.

Consider:

* TARP - This was a good investment. The Federal Government likely tripled their investment. I am giving "W" credit.
* Shovel ready projects - seems to be a delay. However, we can argue that not many capitalists would invest in roads and bridges outside of the "despised" toll takers. Investment in roads and bridges is generally a government play.
* Weather proofing homes - ok, now we are getting into the planned economy. Given the choice to invest capital - read your taxes would be reduced, would we freely choose to improve the efficiency of our home energy use - not likely.
* Invest in health care - I thought that was what comes out of my pay stub every week regardless of how much money I make??

The current administration is in the beginning phase of how to best plan the economy for the upcoming year. Do we need to go there? Do we need to know how many blue Trabants need to be produced, how many green gym shorts, etc.??

Does the current administration believe that thousands of iterations of the marketplace making decisions is more intelligent then a group of intellectuals in Washington DC?

We will see - I believe the shift has begun - enjoy your gym shorts and please share your thoughts.