Wednesday, October 23, 2013

Seeing Through The Deficit Deception

By Chris Rossini

Apologists for the establishment will literally say anything to justify outrageous government spending.

Robert Reich says:
The deficit shouldn’t even be an issue because it’s now almost down to the same share of the economy as it’s averaged over the last thirty years.
Share of the economy? What kind of hocus-pocus is this?

Paul Krugman takes the argument a step further. Check out his reverse logic:
Bear in mind that the budget doesn’t have to be balanced to put us on a fiscally sustainable path; all we need is a deficit small enough that debt grows more slowly than the economy.
These two obviously attended the same Magician's Academy:

Here's are some good questions for those who practice the art of deception: What is the "correct share of the economy"? What is the correct amount that the deficit should be?

Krugman actually has the number!! And, even better, he's willing to reveal the number!!

Dim the lights....turn on the fog machine...because here it comes:
Right now, a sustainable deficit would be around $460 billion.

You see, these are the types of tricks that get the girls:

After Krugman is finished (with what must have been an exhausting calculation), he then rocks his readership to sleep with a nice soothing lullaby:
So we do not, repeat do not, face any kind of deficit crisis either now or for years to come.
And everyone dozes off to sweet dreams of unlimited credit and free healthcare for all.

Now for the truth.

Those who want to live in a free(er) society should want the government to have the following sized deficit: ZERO

Government should never spend beyond what it takes in. In fact, what it takes in via taxation needs to cut and slashed like a WalMart supersale. The conversation should not be about some ridiculous calculation on what the size of the deficit should be, but how to shrink the size of the viral budget!

Deficits are the equivalent of the American public being kicked while they're down.

This is why:

First, because the deficits must be financed somehow. Since the government has its own bank called The Fed to create money out of thin air to finance it, the American public has its purchasing power stolen away. Monetary inflation also sets in motion the boom/bust cycles that we all know and love.

Next, all capital that the government wastes, is capital that could have been used for something productive. We don't live in the Garden of Eden. We live in a world with limited resources. While the government wastes money to setup an embarrassing Obamacare website, other productive and desired projects had to be shelved.

The magic tricks by Reich and Krugman should be discarded immediately. Murray Rothbard provided the cold, hard truth:
The only sound cure for deficits is a simple but virtually unmentioned one: cut the federal budget. How and where? Anywhere and everywhere.

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1 comment:

  1. Perhaps we could convince Copperfield to make the government disappear.

    Oh right. The two illusions will cancel each other out, and would still have nothing up our sleeves... [Or in our pockets.]