The Growing Government and the Ratchet Effect
Mandeville, LA – Exclusive Transcript – “The ratchet effect has done its job. And after it has completed all this, whatever agency, whatever act, whatever bureau, whatever series of regulators that has been employed to solve the crisis will never become unemployed. If you can imagine a crescent wrench, a ratchet crescent wrench, you can imagine you put the socket end on the bolt. You give it a couple ticks up and then you turn. As you turn that screw, you continue to ratchet it up. You just keep wrenching and repeating. As soon as this pay crisis is solved, then there will be another crisis that will be invented, created out of thin air, and they will swoop in to solve that one.” Check out today’s transcript for the rest…
Begin Mike Church Show Transcript
Mike: The ratchet effect has done its job. And after it has completed all this, whatever agency, whatever act, whatever bureau, whatever series of regulators that has been employed to solve the crisis will never become unemployed. If you can imagine a crescent wrench, a ratchet crescent wrench, you can imagine you put the socket end on the bolt. You give it a couple ticks up and then you turn. As you turn that screw, you continue to ratchet it up. You just keep wrenching and repeating. As soon as this pay crisis is solved, then there will be another crisis that will be invented, created out of thin air, and they will swoop in to solve that one. The ratchet effect, as Robert Higgs described in his book Crisis and Leviathan will just keep repeating itself.
Just look at the arc of the Obama administration. You don’t have to look any further than that. Just off the top of my head, all the turns of the ratchet that have occurred, before Obama was elected we had the bailout. That was a crisis. The government swooped in to fix it, created the TARP program and all sorts of other bailouts. After that, the car industry has to be bailed out. Let’s transfer some more wealth that these people haven’t earned. Then the ratchet was cranked up on that and the government got its tentacles even further into the car industry and is now able to order the car industry: You’re going to put cameras in the back of every automobile made now. We’re gonna what? Remember the bailout, Larry?
You wanna look out that window there, Larry? This is what happens when — that’s right, you’re gonna put a back-up camera in every vehicle. Eric, did you see, did anyone in the automobile industry bark, did they flinch one iota when they were ordered and compelled by the National Highway Transportation and Safety Administration to install back-up cameras in every 2016 vehicle made in the United States? Did anyone even mildly protest?
Eric: Didn’t seem that way, Mike.
Mike: You didn’t see anything, did you? It’s part of the scam. The automobile manufacturer goes: This is just too easy. Now we get to force these lemmings, these imbeciles we call customers, now all we have to do is use the power of government to make them buy things. So they’re going to make all of us, whether we want it or not, buy a rearview camera. Look, I’m not arguing over whether or not there is any benefit to the rearview camera. I would never make that argument. That’s not the argument. Don’t call me and embarrass yourself by saying or thinking that’s what I’m arguing here. I’m talking about being compelled to buy the camera. It doesn’t matter whether or not it has a purpose, because obviously it does. But to make everyone buy one, we use the power of government. How did they do that? That was a ratchet, tick, tick, tick. Some kid got run over. [mocking] “It’s a tragedy! Children run over by cars backing up!”
Eric: We’ve got all these conflicts of interest between industry and government, but yet the White House had to go out of their way to make sure Samsung knows that you can’t take any more selfies with the president. That’s crossing the line.
Mike: Who was it, David Ortiz that took the selfie?
Eric: Big Papi.
Mike: Like Obama didn’t know, sure. So let me finish my monologue here on the ratchet effect and just how corrupt this is. So they can compel us to buy things now by using the ratchet effect. As we moved our way through the Obama administration, the Earth is setting itself on fire because evil, despicable Americans, less than one-eighth of the world’s population, it’s all America’s fault because they are driving cars and they have coal-fired generating plants. If we don’t stop, the sea levels are going to rise a thousand feet and everyone will drown. Okay. Wow, that’s one hell of a crisis, Mike! How’s the government going to deal with this one? How’s the ratchet effect going to work here? This one is so easy it’s criminal.
We’re going to have the president appoint an avowed socialist if not a communist or a pseudo-communist named Van Jones. Van Jones and some guy named Steven Chu are going to go into the Energy Department, which has never created a kilowatt of electricity or energy or a quart of oil, and they’re going to pick winners and losers that are going to provide green energy. Yes, we’ll not require evil, despicable fossil fuels. So they did it, didn’t they? Hundreds of millions of dollars were showered onto these solar panel manufacturers and other green energy companies. They staffed up the Department of Energy, didn’t they? You ain’t seen any layoffs from the Department of Energy other than Van Jones leaving and Chu being dismissed as the fall guy for the entire endeavor. Ratchet effect again.
I’ll give you another one. We have these people out there, these evil bankers. These people are bastards. No, check it, they’re rat bastards. We’ve got to stop them. They’re raping, robbing and pillaging middle-class people. Of course, the Federal Reserve that funds all this is not raping, robbing and pillaging people by devaluing the currency. No, it’s the bankers. Please, don’t misunderstand, the bankers are in on it. What are we gonna do? We can’t have another 2008 bailout scenario. We can’t have another TARP. It’s a crisis. What’s the solution? [mocking] “Mr. President, Senator Dodd and I have got this bill called Dodd-Frank. Under Dodd-Frank, we can come in and we’re going to propose that we can fix all this by an act of Congress.” So Barney Frank and Christ Dodd, two of the most corrupt of all the corrupt concoct this monstrosity called Dodd Frank. Crisis is the banking sector. Congress swoops in to fix it. They create this new Office of Consumer Interest, expand the size of government again. You can hear that ratchet ticking. Brothers and sisters, do you hear it, tick, tick, tick? The ratchet effect works again.
What’s the end result of the ratchet effect? What’s the end result of solving the crisis? You people that are small-business people like me, you know exactly what the end result of that is. Have you seen the fees that the credit card companies can now charge? Did you receive your letter in the mail where you were informed that thanks to Dodd-Frank they can now assess a per-transaction fee on top of the percent? Have you seen the ATM fees? Have you seen the overdraft fees? Have you seen the minimum balance requirement fees? What was the end result? Banks can now force me, business people like me, to purchase things I would never have purchased before from a bank, but I have to now. It’s the cost of doing business. No, it’s the cost to the customer of doing business because I can’t absorb all these.
Scenario after scenario after scenario, the corruption continues. It’s not just a corruption of dollars and cents and statistics to keep track of the size of government. At every level of this scam, the largest in the history of mankind, there are winners. At every level there are hundreds of millions of losers. You don’t think Big Media is in on all this? Of course they are. They’re the ones that get to cover all this. They’re the ones that get to say, [mocking] “Well, we’re
gonna give you the latest breaking news on this story. Then we’re going to hire a bunch of pundits and stick them out there.” Then they’re going to give you their opinion of how this is going to negatively impact conservatives, or liberals as the case may be.
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This whole thing, this whole entire menagerie is what my friend, the brilliant and inestimable Donald Livingston, would call the work of a will to power. They have brought into existence a scheme of transferring wealth that did not exist heretofore and exists now solely for the benefit of so few — this is the real insult. Those that benefit from this are such a small sliver of the actual population that they must be going to bed at night and praying to Lucifer himself and thanking Lucifer himself for his kind benevolence and for his ultimate victory against honesty, integrity, truth. And since we are talking basically about government, about the elimination and evisceration of our republican form of government — not only that, in the process of doing that, they’ve sold us this fake bill of goods called democracy, and they’ve ended any American desire, amongst any of the American people, to even consider monarchy or aristocracy. [mocking] “Mike, why would you want to do that? That’s evil.” No, it’s not inherently evil. How’s that whole you get to vote thing working out for us? It seems to me that the more they encourage people to vote, the more crooked the endeavor becomes.
End Mike Church Show Transcript