You misunderstand, GST. I've been trying to point out for weeks that the politics of economics is fundamental.
In other words, expect people to take the palatable alternative, not the economically correct one.
It's obvious and true that excessive debt is dangerous, and people here know it. Many other aspects of the current crisis are equally obvious: moral hazard, failures of prudence, diligence, discipline, regulation and so on.
I'm not saying the choices made are long-term right. I'm saying that crisis decisions made by the last administration and this one are acceptable to voters, and therefore to politicians. All the preaching about what should be done is valid, and interesting. So is a Sunday sermon.
You're thinking I'm endorsing Obama's choices. Not so. Bush's administration made the same type of crisis decisions: economically wrong. I'm simply saying that when push comes to shove, politicians and voters won't do what is right: they won't take the bitter medicine that offers a long-term cure.
Instead, they'll take the easiest, most comfortable short-term course - which is to push the problems onto the next generation, and the next.
Economic virtue be damned. That's the lesson of history.
Regards,
Jim |
