Debt Reduction Smoke and Mirrors

Richard Ebeling emails:

Dear Bob,

I have a new piece on Northwood University's blog, "In Defense of Capitalism & Human Progress" today on "Debt Reduction Delusions and the Menace of Big Government."

I explain the smoke and mirrors of the Congressional and presidential deal to supposedly "cut" government spending to reduce the government's debt. The promised "cuts" in government spending merely represent a supposed decrease in the rate of increase in the government's accumulated debt over the next ten years. Nor do these claimed cuts "match" or balance the agreed-upon increase in the government's deficit spending ceiling.

This "solution" to the debt crisis, therefore, is no solution at all. The only real answer can be found in a dramatic change in the size and scope of government, and a break in the "iron triangle" of politicians, bureaucrats, and special interest groups who live of the productive efforts of those working in the private sector.

Richard's full post is here.