How the Deficit Depresses Our Economy


Our national debt, financed by treasury notes, bills, and bonds, depresses the economy by destroying private investment

The political class insists that we can’t cut our massive, $1,600,000,000,000 Federal deficit, because it would depress the economy and cost jobs. Their excuse is that the private economy is not creating jobs and wealth, so the government must take up the slack.

But what mysterious burden, on our economy, is preventing the basic private investment that creates wealth, allowing the economy to grow, jobs to be naturally created, all of us to prosper?

Ironically, it’s that very deficit.

How?

It’s because of the way the deficit must be financed:

The government has to raise every penny of the deficit it spends, by issuing treasury notes, bonds, and so on. Private people buy these, imagining they are “investing” by doing so. But real investment creates wealth, while government securities just finance deficit spending, as a debt that will be paid back by your grandchildren, as gigantic tax burdens.

This year, the Federal government will have to convince people to “invest” 1.6 trillion dollars in government notes and bonds, to pay for its deficit. Every single penny of that would, otherwise, have been invested in private enterprise, to create wealth.

Imagine if the private economy got an “extra” trillion-plus dollars of investment, next year. The massive growth in wealth and jobs is almost unimaginable.

Now imagine if, instead, the private economy had a trillion-plus in investment REMOVED from it by government. The massive loss in growth and jobs is entirely imaginable, because it’s what we’ve been suffering since the deficit increased almost one trillion dollars in 2009.

Every dollar the government spends steals one dollar from the private economy…either directly, by taking it through taxes, or indirectly, by financing it through a bond or note that steals that dollar from private investment.

Advertisements

Political Experience is a Liability


People complained, of both Obama and Palin, that they lacked experience.

Now if that meant actual experience of being a manager or executive, a leader, it’s a reasonable discussion to have.

But when they mean lack of political experience, they are mistakenly attacking the BEST qualification of any candidate.

All power tends to corrupt and absolute power corrupts absolutely“, as Lord Acton pointed out. And he noted that this includes power through influence, and “corruption by authority”, meaning the way that an institution corrupts its members.

And there is no more corrupting institution than government, which is set apart from all the rest of human society by the ability to legally initiate force…aka “power”.

There are few things more harmful in our society than career politicians. They know less about the real world, and find the evils of government coercion more normal. They are generally against responsibility, anywhere it should be expected.

They, and government employees, including government contractors, and their ilk, form what is now recognized as a separate class of people, the Political Class, that has the most harmful views of any segment of society.

They come to office and are indoctrinated in a culture that devours society and the economy for its own dubious benefit, becoming less aware of the real world every year they are there.

What we need is for our politicians to have less political experience, not more.

Even if we simply replaced every single politician, each year, with someone chosen from the general populace by random lottery, America would be far better off.

Black Racism Proves the Problem is Government


The Obama administration's racist abuses show that the problem isn't the race or sex of the abusers, but that government authority always gets abused.

I have long said that the main problem with, say, black rappers and militant black activists against The White Man is simply that they are confusing “white” with “government”. This is illustrated by the fact that the Obama administration is committing abuses against whites, now, and then the black racist rants of the people they’re shielding from prosecution.

If you simply remove the word “white” from  “The White Man”, suddenly angry black men become part of a much larger movement, and their objections/complaints become perfectly valid, if not some of their “solutions”:

“The White Man is keeping you down!”

No, The Man [government] is keeping you down…it’s just that in your time and place, it happens to be “white”.

  • The problem with the laws that keep you dependent, or make becoming successful illegal, is the law, not the color of the skin of the fools passing it.
  • The problem with the drug war isn’t the White Man using it to keep down the Black Man, but that corrupt or foolish government officials are using it to oppress society in general, especially poorer people.
  • The problem with police brutality isn’t White Cops, it’s power-abusing cops, the culture of cowardice (shoot first, ask questions and get paid leave for being wrong later, for Police Safety), and entitlement/privilege (“we are paid to enforce the law, not obey it” and how dare you exercise your rights instead of complying abjectly) that is the problem.

Of course the solutions proposed, whether anarchist or black activist, can include foolishness like “kill the police“. But only among the most foolish or crazy, and it’s easier to fall into that animalistic reaction when it’s racial, as well. Racism is tribalism, which is always bad.

We can see this with Malcom X, who was reportedly outgrowing the violent racial nonsense, apparently that’s WHY Louis Farrakhan and friends had him killed.

As it’s revealed that the Obama administration ordered black crimes against whites to not be prosecuted, and that black government officials specifically neglected helping white people, we can see that the problem is that authoritarian government ALWAYS gets abused, not the race or sex of the people who happen to be abusing it at any given moment in time.

%d bloggers like this: