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A Microeconomic View of Kowtowing to the U.N.

Many in the conservative world have been railing at the U. N. and the lengthy process of winning their support for defending ourselves. I have seen many forceful arguments, but one argument for telling the U. N. where to stick their approval is missing. This is the argument of the pocketbook.

Some of those calling for us to go to the U. N. have argued that by getting U.N. sanction, more countries will share the burden, and it will cost us less. This is a specious claim. Is Libya going to contribute wealth and soldiers toward freeing Iraq when it could be next? Who are the big contributors to the U. N.? What countries pay the way of this "world" body? Mainly the United States and some of her allies like the United Kingdom. These countries, with the notable exceptions of France and Germany, are already agreed to tackle the Iraqi problem together. How could the U. N. spread costs better? How could they reduce our contribution more than the individually willing countries already have? This is not the true pocketbook issue.

The true pocketbook issue comes on the microeconomic level. It comes with millions of businesspeople and individual consumers across this country being worried, not knowing when the trigger will be pulled. These people allow fear to make them put off buying decisions. What if they invest now and we have a long and bloody war with Iraq? The businesspeople might need to change how they invested money. The individual consumers might need the money they just spent on a new big-screen television for something more important, like a gas mask. We live in uncertain times. In uncertain times, people conserve; they buy less and get by with less, because they just don't know whether they'll have the income to eat tomorrow if they take action today. Unfortunately, it is the million little postponements of buying that add up to factories closing, businesses restructuring, and massive layoffs. It is postponed spending that makes the difference between prosperity and recession. It is these decisions not to decide that slow down the velocity of money, the number of times a dollar changes hands in a year, thereby shrinking our economy.

There is only one way to get all of these people buying again, making the decisions for business and personal investments in growth or entertainment. That is to get this war with Iraq over with. A fast and successful war will shake some other things up. It might curb North Korea's belligerence. It might be the straw that breaks the Ayatollahs' collective back in Iran. Even if it doesn't do these things, it will be a step toward a more stable and certain future where Americans can make financial decisions with less fear.

So, in the interest of saving American jobs and increasing tax revenues for the nation and for her states through economic growth, I hereby make a proposal for a law to be passed in Congress. Here are the five points of my proposal:

  1. If the Security Council is unwilling to fix the Iraq situation now, the UN has become irrelevant and the US should immediately pull out of it. The savings on dues can be channeled to the defense of our country.
  2. Any nations who actively helped Saddam Hussein al Tikriti avoid the consequences of his actions in the Security Council shall be considered terrorist regimes. The penalty will be automatic embargo of all goods and services from these countries. Logically, if the Iraqi regime is aiding and giving succor to terrorists, then those who aid him are supporting terrorists. (Take that, Chirac!)
  3. Any nations who contributed to Iraq's armament programs through sales of equipment and supplies during the past twelve years shall be considered terrorist regimes as in point number two above.
  4. Any companies that sold equipment for the Iraqi weapons of mass destruction program shall be held accountable through fines, jailing of officers, and freezing of assets.
  5. Saddam Hussein is a danger to all, and the United States should immediately remove him from power feet first. Preferably followed by Kim Jong-Il.

Let's stop playing around with these tyrants and dictators and take care of the situation before we have no economy left.


F. B. Knight is Curmudgeon-in-Residence at the Attila the Hun School of Management. He can be reached for questions at fbk@attilathehunschool.net.
 
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