analyticsbox | Jul 14, 2022
DC will not Defuse the Debt Bomb Unless ‘We the People’ Demand it.
“The first lesson in economics is scarcity: There is never enough of anything to satisfy all those that want it. The first lesson in politics is to disregard the first lesson of economics.”
Thomas Sowell
American Economist/Historian (1930-current
“The American Republic will endure until the day Congress discovers that it can bribe the public with the public’s money.”
Alexis de Tocqueville
French Historian/Political Scientist (1805-1859)
Here are 2 rules everyone intuitively knows:
Politicians first priority is to get re-elected and maintain power.
They do this by ‘bribing’ the ‘voting public’ with what it wants (and they do not pay for government with adequate taxes).
I don't mean to be so cynical, there are well meaning politicians who believe in what they are proposing. Unfortunately, the policies are not thought through, never seem to get the desired result and there are many bad unintended consequences. They ignore the laws of economics and basic human nature, the Power of Incentives. Check out this one minute video on Incentives and No Spin #38, Incentives = Economics. One of the awful consequences is the fiscal disaster that befalls us - The Debt Bomb. Everyone in DC knows we are on an unsustainable fiscal path, but do nothing about it. Why not? So they can continue to get reelected and maintain power. They will keep on, keeping on until the ‘voting public’ understands economics, the major problems we face, and demands change. If we continue to be complacent or think there is nothing we can do, we will, some day. fall off the Fiscal Cliff, and that will not be pretty. Future generations will have to pay a heavy price for our failures to control government financial matters. Don’t let this happen! BOTTOM LINE It is up to the ‘voting public’ to solve our fiscal problem by demanding our representatives fix it. If your representatives don’t get it, vote for those that do. LEARN ECONOMICS, THEN VOTE SMART
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