Random January thoughts on the economy

What we really ought to ask the liberal, before we even begin addressing his agenda, is this: In what kind of society would he be a conservative? -Joseph Sobran

A perceptive quote. For most, the answer is “in whatever society I can keep getting whatever I’m currently getting, and I don’t care or I don’t think about how it is extracted from others with threats.” For the true believers in the social gospel, it will occur when we reach an earthly Utopia. We have eternity in our hearts, but we want that eternity in the now. The spending cannot stop until every mouth is fed and everyone is cared for. Which, in reality, means that the spending can never stop, because it ain’t gonna happen.

And so the social security checks and the Medicare reimbursements and the wars will go on until we ram head-on into the wall at the end of the road. Then it’s going to get interesting.

The refusal to confront economic reality is evident in this discussion about raising the debt limit. Why, if we do this, there will be a default! Exactly. These people prefer the delusion (or deception) that there’s a way around this, when in reality adding more debt is just setting up a greater default, and more pain, down the road. Why not just get it over with? There is no way the government can legitimately “stimulate” the economy out of this problem. A bank makes a loan to a company with the idea that the company will be able to expand or grow production, and from that production pay back the loan. The government couldn’t produce its way out of a paper bag.

One more thing: I heard a guy say the other day that the government has a “fiduciary responsibility” to pay the pensions of public workers. Nonsense. If I contractually agree to pay someone $10 an hour, then I have an obligation to pay it. If politicians from 20 years ago passed a law saying that government workers get a massive pension, the law should be changed without scruple because politicians have no right to borrow and steal money from others to pay for it.

If you live by the government, you will die by the government.

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