More Government Than We Deserve, But Just What We Ordered

The modern political discussion centers around the sheer size of government. The "Tea Party" movement a.k.a. the New-New Republican Party, seems to believe that there is too much government, and that we need to cut spending while cutting taxes (and that that will somehow cut the debt--this lacks all mathematical and economic evidence). The Democrats, while saying that we need a "hybrid" approach of both "revenue enhancements" (a.k.a. tax increases or eliminated tax preferences) and spending cuts, propose no major spending cuts and want to only tax the rich instead of following that central tenet of sound tax policy, 'broad base, low rates.' Needless to say (but said anyway), I take a middle route.

Anyway, there is a mentality behind the anti-"big government" crowd that we somehow are experiencing/suffering under too much government thumb--that we're getting something that we don't actually want. However, when polled, the American people prove that they have no idea how to do this, saying that they want to cut government spending but not actually cutting government spending on anything that affects their lives (if they even know that government spending effects their lives--many people deny getting government services a.k.a. "Keep Your Government Hands Off My Medicare" Syndrome).

I actually think that, despite Congress' approval rating nearing that of several historical despots, our system is actually functioning well, and that we're getting exactly the government we ordered: LOTS of government services and benefits (tax deductions & cuts included) WITHOUT actually paying for them.  This IS the government you ordered.


The deficits we're running now (remember--deficits are in-year gaps in revenues vs. spending) are the results of the ever-popular 'getting more than you deserve.' The American People have been riding a free train--and just like my 'old pal' Milton Friedman used to say, there's no such thing as a free lunch. These deficits are the desired path of the people--stuff without cost.

Regardless of whether it's the government's fault or not, the American people have been getting a sweet deal--and will have to pay for it through taxes, decreased spending, and lots & lots of pain. When it comes to cuts in spending, Americans can't agree on much, except for one thing--they don't want to cut their faves or anything that THEY get (see here, here, here, and here.)

So what's the conclusion? Make no mistake: Americans LOVE a big spending government. They hate paying for it. They're like the guys you hang out with that love to party with you, but never buy you a drink. We're a nation of free-riders. This is the mentality behind BOTH the Tea Party sentiment of "cut everything" and Liberals' shouting for "Tax the Rich." Both pass the buck, blame, and bastardry (not a word) onto another group of people--saying it's either too much spending (on others, of course) or too little sacrifice on the part of the wealthiest citizens that's causing the problems.

Earth to Everyone: it's all of the above. Fixing these problems are going to be PAINFUL. The coming tax 'increases' (in quotes because it's really just the expiration of the Bush Tax Cuts) have a nickname: "Taxmageddon." Yes, it's going to be painful--somewhere around $500 Billion out of the private economy (which is still less than half of our current deficit)--but it's a start. Cuts will have to come too.

But guess what: government spending doesn't cause economic damage--government debt does. When you spend more than you have at the current juncture (which pretty much every Congress has done), you are 'mortgaging the future.' When you do that, you take money from tomorrow and spend it today, losing out on the benefits of government spending tomorrow by having to pay interest on that borrowing--a loss to society. This isn't a (R) or (D) blame-game--this is just the way that people have framed things, and it's our collective fault.

It's as if he's saying "I'm a politician, and
I haven't the faintest idea what I'm talking about."

So, it's time to pay the piper. We've made our bed, now it's time to [lose] sleep in it. It's not fun, but it's time.