Friday, August 5, 2011

The Keynesians Have Fired All Their Ammo and Here We Are

At Wall Street Journal, "The Global Rout."

Just read that whole thing. Nation-states can't afford their entitlements, and "structural reforms" are unavoidable. Better to do it earlier than later, before we end up like Greece. President Obama ... are you listening?

1 comments:

Dennis said...

Interestingly, even the IRS has admitted that they could confiscate every thing the "rich" have and it would take care of 24 days of government spending. As I have asked before, Then what are governments going to do when they have spent all of other people's money and there is none to be had? This is not even to consider what would happen to those who actually drive job creation.
I believe a large percentage of California present budget is covered by the federal government even though California's contribution in federal taxes are a little over half of what they receive. One wonders how long California can keep sponging off the rest of the country before both the federal government and California finds that other people's money has run out.
Eventually a very large percentage of money will leave the country just as it has left California and go to much friendlier territory. I would not be surprise to see a significant number of people renounce their citizenship because the nation has become a dictatorship and has increasingly become a "fear" society. One of the factors that denote a "fear" society is the 3 D's, Demonization, Double Standards and Delegitimization. What is the mantra that seems to be coming out of Washington D, C.?
I used to be a fan of John Maynard Keynes and then I grew up and recognized that Keynesian economics leads to economic disaster. If, as Obama is trying to intimate, that he cannot create jobs then it follows that government cannot create jobs. The base for job creation is in the private sector which then makes government jobs possible. The private sector can prosper without government whereas the government cannot prosper without the private sector. Even Lenin was smart enough to figure that out.