Food For Thought

"Labor unions would have us believe that they transfer income from rich capitalists to poor workers. In fact, they mostly transfer income from the large number of non-union workers to a small number of relatively well-off union workers." - Robert E. Anderson


Thursday, May 27, 2010

The Cost of Reality

Oh, God, another "money" posting. Quick, get my No-Doze! I'll try, at least, to keep this a little interesting.

In an unobtrusively placed segment, ABC News has noted that, according to the Treasury Department, the National Debt has now hit $13 Trillion. *Yawn* So? Who cares, it's just government money, they can print more, right? The debt's always getting worse, right? We're no different than any other country, right?

Wrong, Wrong and..... wait for it... RIGHT (and that last one's the scariest). So let's take these one at a time:

"It's just government money, they can print more"

Government money. Is that like that "Obama Cash"? Ladies and gentlemen, this is your money. You gave it to the government on April 15. There is no such thing as "government money". The government does not have some secret stash somewhere that it somehow 'earns' itself. It pays for its services, programs, givebacks, and bailouts with taxes. Period, end of sentence. In the words of John Coleman, "The point to remember is that what the government gives it must first take away."

And yes, it can print more. But our money has no actual value except that which is placed in faith in the government itself. There is no gold or other tangible asset that backs our currency. It is simply the faith that the U.S. Government is "good for it." And the more it prints and less faith other countries have in us, the less each dollar is worth. This, for those born after 1980, is something called "inflation" and it was considered the worst economic crisis since the Great Depression.

You see, our government -- the administration and the yes-men in Congress -- are "giving away" more and more. They are raising taxes and, even faster than that, increasing spending. They are trying the eminently unsuccessful and discredited Keynesian practice of "spending your way out of recession". In order to do that and not infuriate the citizens even further, they print more and more money. This devalues the money, meaning that have to print even more and it becomes a downward spiral. Analysts have been warning since this current government took office that we are destined for a crash even worse than that of the 70's that will make the current economic crisis look like a mere blip on the radar.


"The debt's always getting worse."

Once again, not so much. Some governments (notably, the Clinton administration) have decreased the National Debt. Now let's think about that. How was that accomplished? Under a Democratic President? Yes. Because it's not the President alone who sets policy. It's Congress. And if you'll look at the graphs supplied by a Clinton apologist, you'll note that it was only after the "Contract with America" which resulted in a conservative anti-tax-and-spend backlash that the National Debt decreased under that administration. At the beginning, it kept increasing. You see, Congress must approve budgets and therefore is complicit in anything that occurs with regards to taxation and spending.


"We're no different than any other county."

That's correct -- and scary. All one has to do is to turn on the news to look at what's happening in Europe. Nations, like ours, that tax and spend continuously, are failing and falling like dominoes. The most recent example, of course, is Greece, but there are rumblings that the underpinnings of other socialist economies are shaking as well. All because their citizens have bought into the idea that their government "owes" them anything beyond "life, liberty and the pursuit of happiness."

But our government's smarter than that, right? Consider Obamacare. It proponents promised that this would be $900 billion and "no more than that." Now, however, the Congressional Budget Office is predicting $1.15 Trillion and some are projecting it to top $2 Trillion.

Who's responsible for this impending fiscal trainwreck? Certainly the current administration shoulders responsibility for laying the track and putting the engine on it. But those who are supposed to be watching out for our best interests and responding to our will, Congress, have put a fire to the boilers and stuck the throttle on "full speed ahead" towards the bridge that's out (ok, I stretched that metaphor as far as I could... or maybe not).

Congress spends, as my father would've said, faster than a drunken sailor. They are blithly partying in the egineroom as we, the nation, rush headlong toward the abyss. They do this because they've lost touch with reality. And they are all to blame, all complicit in the ensuing tragedy. So how do we avoid it? By kicking out the engineer and hiring a new one who will hit the breaks before we plummet off the end of the bridge (ok, I'm done now with the metaphor).

I'm just as committed to sound fiscal policy as I am to compassionate and social liberty. I want the government out of my pocket and out of my moral and personal decisions. And I am committed to replacing my "representatives", who don't represent me, with ones who do.

This is what I'm doing. What are you doing?

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