Thursday, February 25, 2010

It’s Happening!...

For over a year I’ve been saying “the worst is yet to come,” because I knew this Keynesian-triggered recession would not be brief and would NOT spare those usually spared – government workers.

Back on January 11th, 2009 I said, “Think things are bad now?

Wait till we see tens of thousands of cops, teachers and other Municipal workers getting pension “buyouts” of pennies on the dollar, screaming about the “broken trust.”

Aside from taking credit for yet more prescient prognostication, I take no pleasure in documenting how right I’ve been.

Today, California teeters on the edge of bankruptcy and about a dozen states are not very far behind, if behind Cali at all.

In New York, the MTA is laying off 1,100 transit workers. The City of New York is looking at massive layoffs of teachers, police officers and firefighters and New Jersey is facing the same kinds of draconian cuts.

Yes, a lot of those spoiled, insular Americans (mostly government workers) who wrongly thought they were immune from recessions are finding that’s far from true!

Turns out that the law of gravity applies to them too.

Fact is, without a vibrant PRIVATE sector, there can’t be a large, well paid PUBLIC sector.

NEED counts for nothing.

If NEED made those jobs necessary, OR if public sector jobs “were as good for the economy as private sector ones,” then Zimbabwe could find prosperity by merely hiring an Army of bureaucrats!

No, a country must first produce goods and services in demand by others in order to afford to care for the “needs” that the public sector services provide for.

And make no mistake, this is just the beginning! The WORST is STILL “yet to come!”

I’m not at all happy to say that.


namaste said...

i hate to sound like debbie-downer, but i think this is a terrible time to be alive. and of course obama will continue to blame bush cuz running the country into the ground couldn't possibly have anything to do with his presence.

JMK said...

I don't know about "terrible," Maria, but certainly "trying" and I fear, increasingly "hard times" to live.

We've overspent and borrowed ourselves into a disastrous state and have yet to feel the consequences of that.

And it didn't start with Barack Obama....not at all. It probably started with Woodrow Wilson a liberal Democrat who oversaw the passage of the Federal Reserve Act and the 16th Amendment (the progressive income tax) followed through Warren Harding's one term, with a brief Conservative respite with Calvin Coolidge's tenure, then roared back under the first "Progressive President of the USA" - Herbert Hoover, who started many of the programs that FDR built the New Deal upon! Hoover also had the U.S. Army engage in one of its most shameful acts - firing upon hundreds of WW I Vets who had come to Washington, D.C. to claim their promised "Bonus Checks." That tragedy, led by General MacArthur!

Here's one account; "On 28 July, 1932, Attorney General Mitchell ordered the police evacuation of the Bonus Army veterans. When they resisted the police shot at them, killing two. When told of this, President Hoover ordered the army to effect the evacuation of the Bonus Army from Washington.

"At 4:45 p.m., commanded by Gen. Douglas MacArthur, the 12th Infantry Regiment, Fort Howard, Maryland, and the 3rd Cavalry Regiment, supported by six battle tanks commanded by Maj. George S. Patton, Fort Myer, Virginia, formed in Pennsylvania Avenue while thousands of civil service employees left work to line the street and watch the U.S. Army attack its own veterans. The Bonus Marchers, believing the display was in their honour, cheered the troops until Maj. Patton ordered the cavalry to charge them — an action which prompted the civil service spectators to yell, "Shame! Shame!"

"After the cavalry charge the infantry, with fixed bayonets and adamsite gas, entered the camps, evicting veterans, families, and camp followers. The veterans fled across the Anacostia River to their largest camp and President Hoover ordered the assault stopped. However Gen. MacArthur, feeling this exercise was a Communist attempt at overthrowing the U.S. Government, ignored the President and ordered a new attack. Hundreds of veterans were injured and several killed "

It continued unabated through FDR's four terms...

JMK said...

...After WWII America was reborn (economically) as the sole super-power (the last nation standing) after that conflict and reaped decades of easy prosperity that later fueled the disastrous 1960s and the unbridled excesses of the LBJ administration, followed by the equally onerous and equally Keynesian policies of the Nixon-Ford administration, until we had our second major economic calamity under Jimmy Carter....until today "the most liberal President in American history." He is now second to B Obama.

But Congress STILL overspent during Reagan's tenure, during Bush Sr's tenure and under Bill Clinton UNTIL 1995, when the "Gingrich Congress" came in and halted government spending.

After Gingrich left office in late 1998, the GOP Congress (under DeLay & later Hastert) became as spendthrift as almost any Democratic Congress....UNTIL the Pelosi-Reid Congress who've overspent and run the U.S. economy aground since 1997!

And G W Bush least he did little, if anything to stop them.

So by the time Barack Obama's first term ends, America will have suffered 100 years of (almost unabated and unchecked) big government ideology that turned America's Founding principles on their heads!

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