So Greece is going to get its big fat bailout.
The “Too big to fail” mindset wins yet again. First it was big union-dominated automakers and high-risk lending institutions. And now it’s entire countries, starting with Greece. And after Greece comes Spain and Portugal, and then will come California and a bunch of other mostly decades-long liberal-progressive states like New York and New Jersey. High taxation and out-of-control spending equal fiscal disaster as states and countries rack up enormous debts that they can never hope to repay.
Here are a couple of headlines for you:
And you know damn well it is. California all by itself is the sixth largest economy on the planet. And the inescapable logic of redistributionism means that the other 49 states are going to have to redistribute their wealth to bail out the People’s Republic of Pelosistan.
Beware Greeks bearing IOUs. Hell, beware ANYBODY bearing IOUs.
In contrast to everything liberals believe, the higher the tax rates, the lower the revenues that are being collected as businesses relocate to states that DON’T hate them. This has been proven throughout American economic history, and it is certainly being proven now: the states with the highest taxes are facing the largest revenue shortfalls.
Their understanding of free market capitalist economics comes primarily through the straw man created by Karl Marx, and so they fundamentally misunderstand and distrust the economic system that made America the greatest nation on earth. They want redistributionism, and someone has to pay for my right to be a nonproductive bon-bon-eating couch potato. That “someone” ends up being the only people with the resources to invest and create jobs. But the rich aren’t stupid, and so they shelter their money to avoid the higher taxes.
And what do we do when the disaster these people created finally comes home to roost? We bail them out, so they can do it all over again. It’s called “moral hazard.” Somebody in power should look it up and then quit doing it.
We keep making this giant ball of stink bigger and bigger and bigger, and we’re all wading through it now, and everything is going to sh*t all around us because our leaders don’t have the courage to simply let losers lose. We’ve become bailout nation, where the people who had discipline and did things right prop up the reckless so they can continue being reckless until the system crashes. Or to put it more precisely, until the system crashes bigger and badder the next time around.
Times are going to get harder. China is announcing that they are dumping US securities in what appears to be an economic war declared against us. That’s going to make it a lot more expensive for us to keep borrowing. But the only way we can continue these insane liberal-progressive policies is to keep borrowing and borrowing.
There’s no question that we need to collect more taxes. But raising rates isn’t the way to collect more taxes. The Bush tax cuts stimulated an unprecedented 52-consecutive months of economic growth even as it generated MORE tax revenue. Obama’s going back to “the failed policies of the past” from the Jimmy Carter era are going to create a lot of damage as Democrats refuse to learn the lesson of the luxury tax again and again and again.
There’s also no question we need to dramatically decrease our spending. And along with that, we need to phase down the boondoggles we’ve created via Social Security (which is now in the red, paying out more than it collects) and Medicare/Medicaid (how does a ONE HUNDRED TRILLION DOLLAR unfunded liability strike you?).
The problem is that the federal government has expanded so far beyond its constitutional limitations that its not even funny – with the lion’s share coming from progressive-Democrat social programs. The government which was supposed to be limited to defending the country and creating infrastructure is now involved in absolutely everything under the sun.
And Democrats will fight to the death for every single one of these programs.
There’s also the now-typical Democrat demand from the government:
Which means we can’t control our black hole-spending. Which means we can’t reduce our never-before-seen-in-human-history debts. Which means that we’re on the same road that Greece is on. Only no one will be there to bail us out when we collapse.
The only question is how long it takes for us to get there.