Federal Government Turns into California

Leave it to Jennifer Rubin to speak the truth (must read). We’ve got two ways (actually three) to pay for the idiotic bill that just passed the inept, cringing, cowardly Congress. We can raise taxes ($8500 per year to cover a one trillion deficit), or we can cut spending (yeah, like that is going to happen). The only other way out is to print money to pay for it. Who knew any political entity could be as equally fiscally irresponsible as California?

But the options are clear: radically cut benefits or radically raise taxes. There is no mysterious solution to “assuring” social security’s future or to narrowing the budget gap. The problem was daunting before and we have now made it much worse, because we have widened the chasm between receipts and spending and because the large stimulus bill and increased debt, as CBO predicted, will likely slow economic growth.

Watch for politicians to be shocked, shocked! when their policies further slow/depress the economy, and then watch as they turn to a hodge-podge of regulations (price controls) to attempt to change things (all the while making them worse). The rest of my working life (if not the rest of my life) is going to be VERY interesting as we march down The Road to Serfdom.

This entry was posted in bailout, congress, crisis, hayek, road to serfdom. Bookmark the permalink.

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