Sunday, May 23, 2010

The Lessons We’re All About to Learn....

EVERY public sector job must be paid for with PRIVATE SECTOR dollars.

Without a vibrant, productive and profitable private sector, there can be no public sector. If that weren’t so, nations like Zimbabwe and Haiti could easily spring from the economic basket-cases they are now to 1st-world status by merely setting up a huge public sector, but those countries CAN’T to that, because they don’t have a vibrant private sector to pay for it. We in the U.S. are just beginning to re-learn that lesson in a very right now.

For decades most of Europe and the United States have embarked on a path to reduce their private sectors and via a stagnating government/business partnership that ruthlessly regulates upstart businesses, along with all the incredible material innovation, economic uncertainty and new opportunities OUT of those regulated markets.

In both Western Europe and the USA the private sector has shrunk, as the public sector has exploded, resulting in huge deficits that have piled the economic equivalent of rolls of unhealthy belly fat in the form of staggering national debts.

At this point, both Europe and the United States have huge armies of government workers who refuse to see their own role in this debt-created economic downturn and even larger numbers of both semi and fully dependent citizens, who live lives heavily subsidized and dependent upon government freebies.

The government-worker riots that have occurred in Greece could happen anywhere in Western Europe and most of the United States.

Make no mistake about it, ALL of this is the result of political liberalism and Keynesian economic policies. The current Keynesian policies began under G W Bush and have merely been “ramped up” under the Obama administration.

The strategy of the Obama administration is as cynical as it is brilliant. It seeks to ratchet up that army of government workers (some 600,000 new federal workers are slated for hire before 2012) and those dependent upon government giveaways - the newly minted healthcare overhaul will make all Americans at least somewhat dependent upon the government for their healthcare - generating an electorate predisposed to supporting those who support their "free stuff," no matter what the cost.

In the short-term, granting amnesty to an estimated 20 million illegal immigrants, allowing felons to vote, along with energizing the public sector worker’s vote may well keep the Obama agenda on track, with the most likely outcome that once entrenched, the entire political debate will be able to be moved even further Left.

If successful, that would move the political debate to where it would be unrecognizable today. As future “Conservatives” could be expected to support universal healthcare and the government-directed semi-private/public partnership along with its sky-high deficits and equally sky-high tax rates as far as the eye can see, as ardently as any liberal Democrat today does.

So, what is the “end game?” An intended calamitous collapse? A coming global Depression, leading to a single global authority or system (one world government)? One supported by today’s multi-national enterprises and their friends in government, media and academia?

That would be an unworkable system and one that every decent individualist would have to seek to destroy.

So the problem currently being exacerbated isn't merely economic, it's systemic. Hundreds of thousands of new government employees have been hired on the federal, state and local level over the past decade and many more are scheduled for hire. Tens of millions of Americans more have been given more in free "entitlements." Government now provides them most of their food and a share of all their other necessities, including all their health care.

You can see the result of that systemic dependency in New Jersey, where thousands of state workers are protesting a Governor's cutting that state's spending, because that state is already broke! The same attitude most of those folks probably laughed at over Greece, where "spoiled government workers rioted in the wake of cuts needed to staunch that country's money-hemorrhaging, in the wake of that nation's insolvency," is the SAME one they themselves exhibited in Trenton the other day.

What's more, fewer and fewer Americans are paying for all this! Today nearly 60% of Americans pay little or no income taxes!

The key to changing/transforming the political system is NOT through putting up new candidates, but in taking control of the internal apparatus of BOTH major political Parties. The Parties largely choose who gets to run, who gets funded and who doesn't. Barrack Obama wasn't an "an agent of change," the Tea Parties are that. Barrack Obama was merely "a change" in tactics, from the Keynesian-light G W Bush to the hyper-Keynesian of the Carter era. The political apparatus of the major Parties has to be completely changed and then many people (mostly government workers and those with newly minted government freebies) have to be convinced to accept some serious short-term pain.

That's not going to be easy for an increasingly spoiled and self-centered society to accept. Just as the economic worst is yet to come, getting people to see their own role in all this is going to be an uphill struggle. Try getting any career civil servant to accept the idea that a leaner private sector, generating smaller revenues requires a much smaller and more technologically efficient public sector some time.

It may well take things getting a lot worse before more people are willing to accept some of these very harsh realities.


WomanHonorThyself said...

we had better take back both Houses Joe! Hope u had a sweet weekend my friend!!:-)

Skunkfeathers said...

The 'entitlement/dependency' current is strong right now, and the Dems mean to deepen it by any means at their disposal. What it will mean for the country matters them.

JMK said...

I hope so Angel....but the GOP has to avoid the pitfalls that befell the Conservatives in England. They MUST deliver a strong limited government message and then follow through on drastic, even draconian spending cuts that will very negatively impact the federal workforce.

JMK said...

That's very true SF...and the corrosive effect on society can be seen in the Greek riots - government workers fighting to keep their excessive compensation packages, despite that country's inability to pay for it.

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