An Adult Conversation about the Budget
by Andrew MellonTo listen to the debates on the deficit and the debt, one would think that wealth emanates from the government. Underlying every argument is the notion that government cuts imply pain and pose a drastic threat to our economy.
But government spending itself is pain because all money spent by the government represents the confiscation of today’s wealth or future wealth, via direct taxation, currency devaluation or debt ad infinitum. By taking current wealth out of private hands, it is allocated not according to a market economy driven by the people but by a political economy in which “investment” yields returns solely for the politicians in the form of votes and favored classes in the form of monetary or regulatory handouts; by devaluation, savers are wiped out and borrowers and spenders are rewarded, a sure-fire way to bankrupt a people, given that economies grow through savings and investment, not consumption; by piling on the debt, the government pushes up interest rates for all of us, leading investment to flow out of the US and crushing corporations and individuals alike.
All government today rests upon a premise that people should be lucky that they get to keep a percentage of the fruits of their labor, with government rightfully conferring benefits on the interests that support it. Which is why it was never intended for government to be in the business of conferring benefits in the first place – and I mean benefits to anyone, be it labor unions, corporations or particular classes of people.
The burden should have always been on the politician to prove to his elector why ANY dollar taken from the individual should be redistributed to someone else. For government’s clearly defined bounds were created to ensure that the usurpation of wealth from private citizens would be minimal, and occur only when it supported a service that all people benefitted equally from, such as our national defense.







Subscribe via RSS
Got a Tip?