[FoRK] "Two faces of the Tea Party"

Jeff Bone jbone at place.org
Fri Jun 25 03:35:14 PDT 2010





On Jun 25, 2010, at 0:04, Dave Kammeyer <kammeyer at kammeyer.org> wrote:

>
> Yes, things are not good now.  The federal government's expenses
> exceed its income by far too much.  I therefore propose that we reduce
> its expenses, and increase its income.

Btw, not a bad proposal IMHO for starters.  The quibble, I imagine, is  
how to do either.

The devil, as always, is in the details.

As you've pointed out correctly, you can't significantly reduce  
expenses without curtailing entitlements and / or defense.  And in the  
long run, just defense isnt even enough. Willingness to do either has  
been sorely lacking to date.  The rabble-rousers stirring up your  
villagers with pitchforks are keenly aware of this.

The "progressive fallacy" with respect to increasing revenues is the  
constantly overlooked fact that, historically, whenever taxes on  
capital gains have been lowered, revenues have increased  
disproportionally as productive capital is deployed and domestic  
product soars.

Unfortunately the presently ascendant philosophy views capital as ill- 
gotten gains, an affront to "economic justice" and a free pile of  
resources to be punitively taxed and redistributed at will, increasing  
the entitlement burden today and indefinitely.

This is a dangerous limit process, tinkering with a chaotic  
equilibrium of incentive mechanisms that is generally poorly understood.

jb


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