30 May 2009

It's the Economic Obacalypse, People!

Following up on his post about how Obama is making America more Euro, Professor Hanson talks about how reckless domestic spending by the Obama administration is going to cripple the country. From PJs:

Take the economy: the liberal attack on Bush as a reckless spender who increased the debt by $2 trillion is now replaced by ’stimulus’ groupies, who are silent about a staggering $9 trillion of Obama debt to come. Cannot the country, the media-anyone!-see that the amounts of borrowing are so gargantuan that we are talking about massive changes in the US economy and lifestyle? The size and inefficiency of the government will grow. We will have soon some sort of national sales taxes on top on state, local, and federal higher rates, the point being threefold: more recipients and distributors of entitlements mean larger liberal permanent constituents-an institutionalization of the welfare state. The debts are so large that it will require a redistribution of income through higher taxes. When a Paul Krugman writes seriously that California’s financial meltdown (9% sales, 10% income taxes) is due to too low taxation (as hundreds of thousands of overtaxed skilled professionals flee the state), then one can see how the power of ideology in the present age so easily trumps empiricism. Three, the debts will end American exceptionalism abroad, and severely curtail our options. In other words, we are seeing the much waited for multilateralism-but by financial default! What depresses is the fact that debt is now being used as a political tool-to reconstitute American culture and society, both at home and abroad.
What a pisser! The collapse of America isn't even going to be something cool like a zombie invasion or a superflu, but excessive government spending brought on by the decline of the real-estate market. No one wants to read a book about that.


NateSF said...

I'm curious why some people liken the '09 stimulus package to the New Deal. The proponents say that the US economy will rebound enough to cover all the new spending with tax revenue.

The major differnce here between the new deal and the stimulus package is that we aren't livinng in the post WW2 world where we are the only functional economy. There will be no boom like there was in the 50's to pay off our debt.

I don't think it's unreasonable to think that we are going to be living under the debt incurred over the past 10 years for at least another generation.

Lisa said...

You doubt the reality of the zombie invasion? They live!