AEIdeas

The public policy blog of the American Enterprise Institute

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  1. The so called debate on the budget and debt between Obama and Conservatives is based on a total misconception. Conservatives assume, naively, that the budget, the debt, etc. are something Obama and the Dems give a rat’s ass about. Wake up, dude and dudette conservative, this is not true. They, meaning Pelosi, Obama, and the entire Dem Senate, House, and blogosphere think the budget and the debt are complete irrelevancies. They assume, as a matter of deep abiding faith as progressives, as a tenet and pillar of the Progressive religion, that budget and debt will take care of themselves, as the idiot Krugman and others of his ilk have clearly stated.

    There is some smidgen of a granule of substance to this view, namely, look how in history, huge sovereign debt was always taken care of, and dealt with successfully. So after WWII the US was in debt up to its eyelashes. Same after the Civil War. Same after WWI. Same true for the world,and Britain and Europe, after the Napoleonic wars – 1815. Same true for Germany and Weimar after WWI. And guess what? None of those incredibly large debt proved to be a disaster. They were all “solved”. Either by inflation, or war, or growth.

    This is not a zero sum game. New energy and money, coming from human ingenuity or rapaciousness, or thievery, or productivity, always seems to come along and pay off the debt somehow. The left Dems see this, and assume the same will happen today in Europe and Greece and the US. Who knows, they could prove to be right.

    They are wrong, of course, but they still could prove to be better predictors of the future than we conservatives. Not that that discourages me and probably anyone else from striving to solve the budget and debt problem the way it should be solved. By cutting spending. By incentivizing free enterprise, by removing stultifying regulation, by lowering taxes, by drastically shrinking government. The Dems prefer to wait for a miracle, and the funny thing is that miracles do happen. Black swans, wild cards, and the Israeli attack on Iran…all these things can and maybe will happen.

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