Saturday, October 25, 2008
The government bubble: When will it crash?
Is the generational surge in "human resources" spending by the government its own bubble? If it is true that all things eventually come to an end, what will be the end of the modern welfare state?
3 Comments:
By 
smitty1e, at
Sat Oct 25, 10:22:00 AM:
Let's just make the welfare state honest by allowing the Congress to require social spending, but have the States retain sole power to raise it.
One might argue in favor of deficit spending in time of war, maybe, but chronic spending on social programs ought to be completely pay-as-you-go.
Taking away Congress's Infinite Credit Card is the first step to reform.
By 
, at
Sun Oct 26, 12:34:00 AM:
Tigerhawk,
Here is the best description of the government's role in the subprime crisis:
Terence Corcoran, Financial Post
Quantum of Failures
Forget the markets: massive government failure is behind world financial chaos
And this brings me to why the big state cannot be reformed on the long run.
Almost all organizations/movements *WILL* be corrupted/subverted/perverted in time. It is not a question of if but when. Sooner or later, the well meaning and honest starters and their honest followers will be forced out, hated out, or die out, and their organizations/movements will be taken over by careerists, powerhungry individuals, or people with hidden agendas.
Environmentalism is a good example. I am sure that most people support preserving the environment. But today's environmental movement is not about it but about social engineering, power, and dictating others how to live. The best and most infamous example is Al Gore. We all know about his boat, his impressive house, especially when compared to President Bush' house, what kind of landlord he is/was, how carbon efficiently he travels to give speeches about the environment, and finally but most importantly, about his wealth. But of course, Al Gore is not alone.
Another good example is feminism. Who can disagree, today, with equal rights, suffrage, etc, or in other words, some of the original goals of feminism? And does today's feminism has any resemblance to it?
Trade unions. Just one article which perfectly describes this corruption.
Other movements/organizations which are corrupted
civil rights movement -> racism industry
United Nations -> United Nations
Guilt about our past -> multiculturalism and wholesale destruction of whole countries (Melanie Phillips' Londonistan is a good book, and it looks like Sweden is also doing an excellent job of becoming a *REALLY BAD* example).
Helping the poor -> Socialism/Communism.
Rome during the five good emperors -> Caligula, Nero, etc.
(old school) Liberalism -> modern liberalism
Church (ok, they were not that good to begin with) -> pedophile priests
Etcetera, etcetera.
So, where is the problem? Richard Fernandez mentions the case of psychopaths. According to him (albeit he doesn't give 100% credit to this theory), and a linked-in article, it is just a question of time when this corruption is going to happen.
So what happens if we grow the sate? Who will take it over sooner or later? Some really bad people whose goal is power, domineering, social engineering, etc.
The top level of the government is fairly immune to this problem because they are controlled by wide outside forces (the society which can vote them out or power). On the other hand, some parts of the state, those who write regulations, who set the educational agendas or "health goals", the bureaucrats, the police, etc. are staying. And if they are corrupted, then ... well, the top level gov't cannot fire the whole state apparatus.
So the solution is the small state. As Lincoln said, power corrupts, absolute power corrupts absolutely. And thinking about these issues, I start to realize even more how incredibly smart and wise the US founding fathers were. Jefferson eloquently brought up the idea of liberty. Madison wrote a Constitution where the power of the state is limited. And Washington lived up to it. How many political leaders quit office before their deaths on their own? I feel, that these people were thinking about these psychopats when they decided that it is best to limit the state of the power, but since this is a newer phrase, they couldn't be more specific.
If the topic of your post, that the end of the welfare state (big government) is in sight, then this financial crisis is a blessing in disguise.
Vilmos
By Mystery Meat, at
Sun Oct 26, 12:56:00 PM:
None of the social welfare programs of Roosevelt's New Deal have ever been repealed. The basic problem is that most voters like those programs, and most will like socialized medicine when it becomes a reality in the next few years. GB Shaw said a government that robs Peter to pay Paul can always count on the support of Paul. We are growing an incredible new number of Pauls.
It has been a long-recognized danger of democratic government, going back to the Greeks and the Founding Fathers, that once people figure out that they can vote themselves "benefits," they will do so. Then they oppose anyone who tries to take those benefits away, and vote for those who promise to expand those programs. Look at what has happened in Europe. The "conservative" party in most European countries would be considered left-liberal here.
Obama is a stone leftist who will likely have majorities in both houses of Congress. If the Democrats are able to get a veto-proof majority in the Senate, all bets are off, and you can kiss goodbye America as we have known it.
