Spending Without Real Cause

Every once in a while I come across an article I completely agree with. Anyone with half a business sense knows the spending proposed by North American governments won't do anything. In fact, they may even end up hurting us more.

I know. I read liberal web sites - let's pick on them shall we? Here's the thing about liberals: They tolerate government interventionism. It makes perfect sense to them. After all, it's excessive greedy individualism that's brought us to this point. To say nothing of conservative deregulation forces. They base their cure to the problem on what they've seen in the last eight years.

But this is a myopic view. If anything, the jig is up on how liberals approach economics. They can say all they want about the evils of tax cuts and such but the real bankrupted economic policies come from the left.

It's over. Give it up. They ask "what's the alternative?" Well, let the deadbeats be purged, handle the pain, cut taxes, save money, take a hit and be stronger down the road. It's not pretty but that's the real road to take. When you lose money in the markets do you borrow more to try and get yourself out of it or do you find the mental strength to start over and save? I know what I'd do.

Eric Margolis is closer to the truth than Paul Krugman - who to me, has lost his mind:

"A not-so-funny thing happened on the way to economic recovery. Over the last two weeks, what should have been a deadly serious debate about how to save an economy in desperate straits turned, instead, into hackneyed political theater, with Republicans spouting all the old clichés about wasteful government spending and the wonders of tax cuts."

I think this opening paragraph is one gigantic clinker. Read the rest of his bizarre piece in the link provided. I've dissected his article but chose not to post it.

Contrast this with Margolis who is far more prudent:

"...Politicians everywhere are panicking as voters demand they do something to keep their debt-driven economies running in high gear. This is impossible. The debt bubble has burst. But politicians are afraid to tell voters the hard truth: the party is over. Retrench, stop borrowing, cut spending, start saving, live smaller."

"...Now, Obama and his team of Democratic Kenysian economists hope to spend the US out of deep recession by dishing out US $ 2.2 trillion in freshly printed money. I might add: Backed by nothing. It's like printing counterfeit money.

The famed 1930’s economist Lord Keynes claimed governments could correct recessions by massive deficit spending which would be repaid when boom times returned. His theories have become a state religion for liberals on the left of the Democratic Party.

But massive deficit spending is like treating a poison victim with more big doses of poison. This kind of economic voodoo reminds me of medieval medicine: try every kind of dangerous procedure until you either kill the patient or he somehow survives the doctors."

Europeans are right to be concerned by the fact if Keynesian spending goes wild it will lead to hyper-inflation. Obama should cool it.