Monday, May 21, 2012

Paradox of Thrift

There's been a lot of talk lately about the "Paradox of Thrift". This is one of those postulations that is observable fact, obvious to anyone with half a brain, but scares hell out of voters. Basically what the "paradox" says is when you find yourself in incredibly suffocating debt due to profligate spending (Dem handbook says to gloss over this part) and actually stop the bloodletting, then as a result economic activity will slow down and there will be less consumption, less saving and less growth (Dem handbook says hits this part hard). Well no kidding? Thank God for liberals and John Maynard Keynes! We dolts out in the sticks would never have figured this one out.

How stupid would you have to be to not see how obvious this so called paradox is? If you as an individual, family, company or country spend money you don't have then hard times are coming sooner or later. It is impossible to spend your way out of debt. You cannot purchase economic prosperity like a loaf of bread. Stimulus packages are just transfers of wealth with no beneficial impact on an economy whatsoever, it just takes money from the productive and gives more often than not to the non-productive. So the Democrats try to use this Keynesian nonsense to justify their spendthrift ways and beat Romney over the head as well. In the situation we find ourselves in today, to get back to a healthy productive economy, depravation and pain are unavoidable. Sorry, but there it is. And anybody who says differently needs a slap.

1 comment:

Anonymous said...

can I have an 'Amen!"

Spending other people's money is addicting. Congressional spending of our money by Congress, unfortunately, is the currency of their too frequent reelection.

Limit Congressional terms and you take a giant step towards solvency, bringing in, by artificial means some say, fresh ideas and recent business experience to at least one branch of government where it is desperately needed. Both parties are at fault as we found out in the 2000's.

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