Wednesday, November 23, 2011
Can We Get Off the Merry-Go-Round?
SEE HERE There used to be this song that went something like "... the music went round and round and it comes out here ..." That song started rattling around in my head as I read Ann Coulter's column. I guess the bottom line is that the American people are either incredibly stupid or just not paying enough attention. The Democrats have been playing this game for generations. Tax increases now for spending cuts that never come. Promises from Democrats have proved to be entirely without value. They make the promise and then renege over and over and over again. It's something they can only get away with because of the connivance of the press. The press quotes out of context, maintains the mantra that it is those stubborn Republicans who won't raise taxes that cause deficits. The reality is however that no matter how much we raise taxes the Democrats will spend more than any increased revenue. But in any cases generally increasing taxes decreases revenue since we on the wrong side of the Laffer curve. That means an increased tax strategy is a double whammy. Not only will revenues fall, but because Democrats will anticipate rising revenues they will increase spending more than the anticipated increased revenue that doesn't materialize and we get twice as much deficit kick. If we don't wise up, and maybe even if we do wise up, we're doomed. We'll just go spinning and spinning around the Merry Go Round until there's no more wealth to tax and the gold ring is gone and the contraption falls apart.
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