[FoRK] "Two faces of the Tea Party"
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
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.
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