Keynesian economic policy is a negative-sum game: They essentially believe that you can take water from the deep end of the swimming pool with a bucket, carry it to the shallow end while sloshing water out onto the deck along the way, dump it back in, and somehow the water level of the swimming pool will rise.
(HT Robert Higgs, +Steve Ciciotti, and +Manuel Lora. I “stole” your ideas and remixed them.)
[I just posted this on Google+, but I figured it was worth posting here as well.]
The debt ceiling is just for show; it hasn’t stopped the federal debt from increasing and politicians just keep raising the ceiling when it’s reached.
Failing to raise the debt ceiling will not necessarily result in default. The federal government has plenty of revenue to cover interest payments, even if it must shift that money out of other parts of the budget. Any claims of immediate default and imminent financial collapse are disingenuous fearmongering designed to fool a gullible and economically ignorant public and force an increase of the debt ceiling and an increase in taxes.
Tax cuts are not the reason for the debt crisis — spending is. Spending in excess of revenue is the cause of any debt, public or private. The federal government has been increasing spending with and without tax cuts for a very long time, under both parties.
The CBO’s inclusion of tax cuts as a major source of current and future federal debt is disingenuous. Why?
- Tax cuts are not spending anymore than tax breaks are subsidies (sorry Rachel Maddow).
- All of that estimated debt increase can be eliminated by cutting spending without eliminating tax cuts or raising taxes!
The solution is not to eliminate tax cuts and loopholes, let tax cuts expire, or raise taxes. Increasing taxes, however you do it, will inevitably lead to more spending because governments will find something to spend that increased revenue on and then some.
I’m pleased to announce that you can now subscribe to the Libertarian Standard on your Kindle ereader.
Simply follow the link to the product page or click on the ad-button below, in the sidebar, or at the bottom of each post.
Amazon sets the price, which is currently at $0.99/month, with a 14-day free trial.
We get a cut of 30%, which will go toward operating costs: domain registration, hosting, and the like.
If you have a Kindle ereader — not an app, sorry, but the physical device (the service is limited to them for the time being) — consider the advantage of subscribing to the Libertarian Standard. Posts will be delivered to your Kindle wirelessly (when you’re connected) when they’re published on the site. You’ll be able to read our commentary and analysis, as well as the syndicated Mimi & Eunice comics, at your leisure on a lightweight, very portable device, in sunlight, away from a decent wireless or 3G/4G connection. Good for commutes, plane flights, camping trips, and similar situations in which you’re not consistently connected to the world via the internet and can’t reach our site — particularly if you don’t own a 3G/4G-connected tablet pc and don’t like reading on a computer screen or lugging around your heavy laptop.