analyticsbox | Jul 21, 2021
There is a lot of discussion in DC these days about grandiose plans for ‘infrastructure’ and ‘human infrastructure’. There is even some talk about how or if we will pay for it. The price tag for this is 1-7 TRILLION DOLLARS!!! It just depends on whose ideas come to fruition.
When will we ever learn?
How will we pay for all this? Taxing the rich doesn't work, there aren't enough dollars to pay for all this - even the more liberal news media understands this.(And there are serious negative consequences relating to the disincentives from punitive taxes.) Should we borrow ourselves further into oblivion? That won’t end well. Print money? That won’t end well either. Tax everyone a lot like they do in Sweden (see video 9)? The President promised not to do that! Are there any good choices on how to pay for all this?
Is this really what we want and is it good economics? Is it good policy? Is it good for the Country?
We need to listen to the objective economists as they analyze the scenarios. Take a look at the results of European style socialism. Big welfare programs, big government, big taxes and economically underperforming countries. It has led to a culture of ‘entitlement’ and ‘dependency’ which will be hard or impossible to break. It is not ending well there. Several countries are so far down the road to ruin, they are teetering on insolvency. (actually they are insolvent, kept alive by emergency loans) Look at what is going on in Greece as an example of where all this ends. Is that where we want to go?
I think not!
The Bottom Line
It is important to step back and look at the big picture before it is too late. Smaller government, more freedom, and modest taxes has always been the formula for growth and prosperity.