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Milton J. Madison - An American Refugee Now Living in China, Where Liberty is Ascending

Federalism, Free Markets and the Liberty To Let One's Mind Wander. I Am Very Worried About the Fate of Liberty in the USA, Where Government is Taking people's Lives ____________________________________________________________________________________________ "Extremism in defense of liberty is no vice. Tolerance in the face of tyranny is no virtue." -Barry Goldwater-

Saturday, May 29, 2010

We’re too broke to be this stupid - Mark Steyn, Opinion - Macleans.ca

The always pointed writing of Mark Steyn argues that we can longer afford to spend money stupidly. People have argued that wealthy nations can spend extraordinary sums of money to some difficult social problems irrespective of its effectiveness. The metaphor of the 'leaky bucket' solution as proffered by economist Arthur Okun argues that irrespective of the effectiveness of government intervention, it still has to be offered. He said.....
"The money must be carried from the rich to the poor in a leaky bucket. Some of it will simply disappear in transit, so the poor will not receive all the money that is taken from the rich."

Modern times (post WWII), unlike the past when people had to get their hands 'dirty' in working on the problems themselves through their communities, families and churches, Steyn argues that modern societies wipe their hands of these problems by fobbing them off on government....
So the easiest “solution” to the problem is to throw public money at it. You know how it is when you’re at the mall and someone rattles a collection box under your nose and you’re not sure where it’s going but it’s probably for Darfur or Rwanda or Hoogivsastan. Whatever. You’re dropping a buck or two in the tin for the privilege of not having to think about it.
I think that the problem goes even deeper than this. Wealth is created through work and savings. As the book, the millionaire next door found, millionaires are created by these following general:
Spend Less Than You Earn
Avoid Buying Status Objects or Leading a Status Lifestyle
Prodigious Accumulators of Wealth Are Willing to Take Risk if it is Worth the Reward
Economic Outpatient Care- spending large amounts of money on family consumption
Spending Tomorrow’s Cash Today- borrowing
There is a connection between being able to accumulate wealth and these practices. However, the nation, as a whole, eschews these principles and is engaged in Economic Outpatient Care, in such as large scale, coupled with spending more than is earned that will ultimately destroy wealth and make any nation engaged in these practices to no longer be wealthy.

We’re too broke to be this stupid - Mark Steyn, Opinion - Macleans.ca


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