The further to the left or the right you move, the more your lens on life distorts.

Wednesday, July 08, 2015

Bubble World

A recent U.S. Census Bureau report indicates that there are approximately 55 million people in the United States on means tested public assistance. Politicians like would-be Democratic presidential candidate and socialist Bernie Sanders tell us that this is all due to "income inequality," not to mention voracious capitalists who prey on the poor and downtrodden. The millions of progressives on the Left who praise Bernie agree, believing the fantasy that big government programs can sustain themselves long term on other people's money. After all, in the United States, it's worked so far.

Progressives are the first to applaud "sustainability." In all things, it appears, but financial policy. The policies (if you can call class warfare a 'policy') that Bernie and his Democrat followers (including Hillary Clinton) espouse are unsustainable, unless significant reforms are made and the economy escapes from the malaise created by Barack Obama's high taxes, high debt, and massive regulatory state. Ironically, it's low taxes, lower deficits and reduced regulation that will create more government revenue by spurring economic activity—but Bernie and company are blind to that. After all, it doesn't fit their narrative.

Bernie Sanders and his followers are residents of a "bubble world" that Richard Fernandez describes in the following way:
In the bubble world there are more claims on assets than can be satisfied. In the pre-crash world this is unnoticed. As in the game of Musical Chairs, it is not obvious till the music stops. Only when the tune is interrupted, in the post-crash world, does the audience will see there is one chair short.

Politicians and unscrupulous politicians are in the profession of overselling capacity, but ensuring they always have the chair. Politicians for example, promise the same taxpayer dollar several times over to different constituencies. And it goes along swimmingly as long as they can kick the can down the road.

For example Obamacare was created to save Medicaid from bankruptcy. Now Medicaid expansion is used to prove Obamacare is working. Obamacare was funded by reductions from Medicare. Now the Medicare “doc fix” shortfall will be funded by obtaining “savings” from Obamacare. It’s circular process where the same dollar moves from chair to chair.
Bernie Sanders, Hillary Clinton, Barack Obama and their followers on the Left love the game of musical chairs. They promise savings when there will be none. They call wasteful and often unneccessary spending "investments." They suggest that if only the "rich" paid their "fair share," there'd be enough chairs for all. They argue that "income inequality" if remedied, would miraculously remedy our financial state. None of this is true, and deep down, I suspect they know it.But maybe not.

As long as everyone circles the chairs, it all sounds good. Until as Fernandez notes, the music stops. It is only then that everyone will face the reality that Bernie et al are one chair short. And the ones left standing will be the very people who Bernie et al purport to champion.