Tuesday, February 9, 2010

The 2011 Federal Budget and Deficit Spending

I was very disappointed when I read a news article, yesterday, about the new federal budget. For one thing, it was hardly news. Just listen to the very first line of the article: "President Obama's $3.8 trillion budget blueprint met immediate resistance from congressional Republicans this week, with each party seeking to avoid blame for deep, structural deficits extending into the next decade" (The Week February 12, 2010).

Excuse me? And this is news . . . WHY? This nation, along with every other nation in the modern world, adopted the economic philosophy/policy of deficit spending a long, long time ago. ("Hey, The Week magazine: this is NOT news!")

Ever since the late 1930's this nation has adopted the harebrained economic theories of the late British economist John Maynard Keynes, whose economic philosophy of deficit spending and fiat currency has now ruined our economy. To those who understand basic, traditional economics this comes as no surprise. And the fact that our nation has "deep, structural deficits" is NOT news. This has been the economic plan all along. Having long ago adopted Keynes' theories, we are, now, exactly where we should be, economically speaking: bankrupt.

Do you know why? Do you know what Keynes' brilliant economic theory was and why it doesn't work in the long run?

Think of it like this, if you want something that you can't afford, because you don't have the money that you need in order to buy it, then what should you do? According to traditional economic theory, you would work, save your money, and buy what you want to buy when you had saved up enough money to do so. Sounds simple, right? And Keynes' bright idea was . . . what?

J.M. Keynes: "Hey, let's just buy what we want to buy on credit! And we'll just worry about paying for it . . . later!"

Does this sound familiar to you? It should; this is exactly what the mortgage crisis was all about: people buying houses they COULD NOT afford, because they were envious of those who COULD afford to buy them. Then there are the bankers who were lending these people the money they needed in order to buy those houses, even though these people were not really qualified for the loans, because the bankers hoped to somehow, foist these bad loan off onto other banks or lenders, because they were greedy.

Do the wealthy elitists (the politicians of BOTH parties) who are running this government think we're all just a bunch of idiots? Hell, maybe we are a bunch of idiots. We get the government we deserve, after all. And how many people really understand, or care about, economic theory anyway? I mean, who the hell's ever heard of John Maynard . . . what's his name? And who cares? ("Just pass me another beer . . . my TV show's coming on now.")

Most people think economics is confusing, but it's really not. The word economics means, very simply: the law of the home (Greek: eco = home; nomos = law). It's really very simple; it's how you should rule your home, financially.

When we focus upon the U. S. as our home (our ecos), the U. S. economy is our primary, financial, concern. And when we focus of the world as our home, the world becomes our primary concern, financially. And every time you hear a politician say that he's concerned about the global economy he's telling you that he doesn't really care about the U. S. economy, because the U. S. is not the home (ecos) about which he is concerned, financially. If people in Malaysia are working for $1 a day, he's happy. If a lot of people in the U. S. aren't working, he really doesn't care; the U. S. is not his primary, financial concern.

When our politicians overtaxed industries and businesses, they eventually fled. First they fled the northern states, which overtaxed them, for the southern states, and then they fled the U. S. altogether. And why shouldn't they? They are trying to make a profit, not have their profits seized by the politicians who represent their lazy, envious, and greedy constituents.

And we're supposed to be fooled by this economic shell-game? Printing worthless paper bills? Overtaxing businesses and employers? Caring more about the global economy than our own nation's economy?

Give me a break!

The politicians of both parties have sold out hard working Americans by overtaxing the companies who would have liked to have hired them and forced them overseas (if they wish to keep the money that they make anyway), and by handing out federal benefits to people who are able to work but who are simply too lazy to work. And the unions haven't helped at all either. I, for one, have no sympathy for someone who goes on strike because they are ONLY making $35.00 per hour (!). Are you kidding me? I would love to work for $15.00 per hour. But now most of the companies that could have hired people like me are in Mexico, where people are only happy to work for $2.00 per hour, or even less. (But hey, that's good for the global economy!)

Do we realize that our political "leaders" have devastated our nation's manufacturing base? How else, besides growing, mining, smelting, or manufacturing a durable product are we supposed to grow our economy? the service sector? But that's what they tell us isn't it: "We have a service economy now", they say. It's a service economy alright, but there aren't enough people who can afford to pay for services' not enough to employ as many people as we need to employ, which is most everyone. We need the farms, the mines, the smelters, and the factories too. The Chinese have all of those things and they're doing just fine, thank you. They also care more about China (their home) than they do the global economy. I'm all for a global economy, someday, but let's get our own economy fixed first, okay?

The Keynesian house of cards is collapsing, fast. And, apparently, the politicians assume that we are too STUPID to figure out just what, exactly, they've been up to: fleecing the American people of what little money they have in order for them to fatten their own wallets. And it's not just the politicians either; it's also the federal, state, and local government workers who are fleecing their fellow Americans. Especially the Feds.

I, for one, am really fed up with the Feds.

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