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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-

Thursday, April 14, 2011

The problem with the government debt......

The problem isn't really with the government debt. Excess debt hurts but so does excess taxes. The real problem is that the US government spends too much money and has promised too many goodies to too many people without the ability to pay for them.

Implicit in big government spending types is that somehow government spending is more effective and more efficient than allowing people with the resources to allocate it themselves. We know from the last massive pork spending bill at the beginning of the Obamessiah's presidency that these things just may not be what they are promised to be. It did not improve employment and one cannot objectively argue that it increased economic activity. See, the money that government allocates has to come from somewhere. It either has to come from people that save and consume in the form of taxes or from investors in the form of borrowing. Investors would have allocated the funds somewhere and probably in areas that the government were not focused on. So, one cannot prove that the funds that government allocated to their spending priorities was better than the spending and investment priorities that the people that originally had the money.

The biggest problem with the American central government is that it is proving to be a failure in all of these promises that it is making. The socialists are now arguing that we can straighten this out painlessly by seizing the assets of the wealthiest Americans. Like the failed stimulus, this too will fail miserably.

1 Comments:

At 10:18 AM, Anonymous Anonymous said...

It's too late. It's time to head for the hills.

 

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