The end of the Clinton era saw the bursting of the dot com bubble. Rampant speculation drove tech stock prices to unsustainable levels, and what went up came crashing back down.
We just witnessed the housing bubble's big bang, with resulting downsizing of irresponsible lifestyles. There is talk of bulldozing entire vacant neighborhoods in some failed cities like Detroit.
Big Government Bubbles
Unfortunately, government gamblers who are incapable of learning anything continue to pump hot air into the increasingly unstable big government bubble. President Obama, fresh from blowing trillions, brazenly says we are borrowing too much money from China, we're broke, and the irresponsible spending must stop. Oh, and he also wants to fund windmills and free health care for everybody.
California is Exhibit A
Paul Krugman can always be relied upon for liberal doses of economic advice. Like practically all liberals, he stubbornly pins California's fiscal disaster to proposition 13, the conservative ballot measure that capped property taxes.
William Voegeli exposes Krugman's gross ignorance:
Property-tax revenues in the state have increased from $4.9 billion to $47 billion in the 30 years since Proposition 13. Adjust those figures for inflation and population growth, and property-tax revenues in California were 87 percent higher in 2009 than they were in 1979, chiefly because of rising property values.Heedless of facts, Krugman goes a step further, predicting the same disaster for the US for the same reason: Those angry, stingy conservatives are blocking "responsible" tax increases that would pay for all this spending.
For Statist Progressives like Krugman, it's always too little taxation; never too much spending.
We all want something for nothing and the politicians are too cowardly to tell us no, so we end up with more government than we can afford.
China and the US are in a Mexican standoff: We can't stop irresponsible borrowing, they can't stop irresponsible lending, and the negative synergy has us on a mutual downward spiral.
Why doesn't it occur to anyone to downsize our overleveraged government?
6 comments:
Silver:
It occurs to ME!
A VERY LOUD "AMEN" from me! (And it can't happen too soon.)
Why doesn't it occur to anyone to downsize our overleveraged government?
Perhaps because for so many decades people have been conditioned to believe that centralized government can solve our problems.
Fact is, tossing money at any "problem" rarely solves that problem. And when it's the taxpayers' money being tossed, the problem, whatever it is, doesn't get solved -- although a lot of palms get greased along the way.
It was that Dumbo eared, skinny but, purple lipped freakazoid, along with Chris Dodd and Braney Freak who were the main characters who caused the housing bubble bust, and now the son of a commie slut is going to say we are borrowing too much money from China? Oh give me a friggin break!
They are afraid they will lose their sacred cows.
Perhaps because for so many decades people have been conditioned to believe that centralized government can solve our problems...exactly right and so wrong!
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