Bad Advice from Michael Moore

Recently, Michael Moore sent an "action plan" to his email list with suggestions for those eager to "fight back" against capitalism after having seen his movie. Most of Moore's suggestions are standard left wing fare: bigger government, more regulation, socialized medicine, more unions, etc. However, one suggestion in particular shows how little Moore, a college drop out, understands what's going on in our economy:

3. Do not invest in the stock market.If you have any extra cash, put it away in a savings account or, if you can, pay down on your mortgage so you can own your home as soon as possible. You can also buy very safe government savings bonds or T-bills. Or just buy your mother some flowers.

What a horrible idea! Instead of investing in real assets, Moore would have his followers store their wealth in dollars. This at a time when the supply of dollars is rapidly increasing, and the value of the dollar quickly decreasing. Even worse, Moore suggests buying savings bonds or T-bills. The only thing worse than storing one's savings in dollars, is storing one's savings in contracts to receive dollars in the future. In general, the only hope the average individual in this country has for their savings to retain its purchasing power is to invest in stocks and commodities. What Moore suggests here, is tantamount to telling his followers to flush a chunk of their nest egg down the toilet each year. Not only does this demonstrate Mr. Moore's complete lack of understanding with respect to basic economics, but it calls into question any and all conclusions drawn in "Capitalism: A Love Story".