Tuesday, March 24, 2009

Saving the Will of the People

As we witness a historic spending blowout on Capitol Hill a couple of questions we should ask are:

1) Is the gov't correct in assuming recessionary deficit spending is the optimal course?

When asked what we should do during these tough times, the results are in:
  • 300,000,000 micro-economists of average intelligence answer: SAVE
  • Handful of brilliant gov't economists answer: SPEND
Who is right? Given that recessionary deficit spending has never conclusively worked, I would favor the 300M on this one. Europe's ECB chief agrees.

2) Does the gov't have a right to engage in recessionary deficit spending?

Should not the government represent the will of the people? When the people have so clearly indicated that now is the time to save, does the gov't have a right to defy our collective will and force us to spend?

To put this in perspective, just imagine if we held an election and the results were in:

The People want: DEMOCRATS

But someone, let's say the military or other power stepped in and said, "No, that's the opposite of what you need during this crisis and instead appointed: REPUBLICANS

Wouldn't that be cause for revolution?

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