KimmelBridwell854
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Politics Versus Economic Reality: We Will All Lose
In the western world there's quite obviously a battle between your politics and also the economics. It is clearest is Europe where - all most as one - the economists say the Euro is condemning many to long term austerity and inevitable poverty and it is therefore unworkable - but somehow the politicians don't appear to get it: or will they think the choice is worse? And the reason behind this problem is most of all the commitment to excessive government spending primarily driven by the welfare state. And in the united states, exceptional bastion of free enterprise and also the American dream, is in the middle of the battle to bring the very same welfare state to people shores whilst ignoring escalating public debt.
In Democracy in America (published in 1835 in France), Alexis de Tocqueville wrote "The American Republic will endure until the day Congress discovers that it may bribe the public with the public's money." And that seems to be happening today. De Tocqueville is interesting because at that time France, and even the remainder of Europe had primarily aristocratic rule and that he was a liberal who supported the idea of democracy. But he was worried about the long term effect of this democracy on sensible economics: "From that moment on, most always votes for that candidates promising the most benefits from the public treasury which means that a democracy always collapses over loose fiscal policy."
An interesting development in that the EU - in a desperate make an effort to save the Euro - has decreed that member states should have a balanced budget. Of course the reason they didn't possess a balanced budget was because politicians wanted to bribe their voters and or their financiers (these day almost exclusively big corporate).
Nevertheless the EU is fulfilling De Tocqueville prophecy by attempting to sideline democracy - in both Greece and Italy an effort by democratically elected leaders to even consider the possibility of leaving the Euro led to their instant removal by scheming EU apparatchiks as well as their replacement by so-called Technocrats. If the EU has its own way I suspect the Greek election due soon is going to be postponed as will every other election that threatens a vote that will destabilise the union.
Obviously the total absurdity from the EU is as it clamps down heavy heavily on rising budgets in EU members states its own budget expands exponentially with screams of protests if anybody suggests otherwise.
However the simple concern is this - can democratically elected governments really cut the money they're paying out towards the voters and ever hope to be elected again? Clearly the very first prerequisite would be that the politicians are willing after which are able to result in the argument - and win it - with their voters. These days, with politicians who use opinion polls instead of conviction his or her guiding light, that seems a large ask. Or is it conviction of the wrong kind - a conviction towards the liberal democratic model that believes their state should 'take care' from cradle to grave. The situation in the US appears to be probably the most peculiar - with Europe as an example of what goes on when too much is spent of social largesse it is extraordinary the US appears to be following a same model. You don't need to be considered a member of the Tea Party to see something needs to be done about US government spending - and surely the priority should be obtaining the budget balanced before contributing to it!
The UK's electorates obsession with the NHS (free healthcare) is an illustration of the issues of attempting to alter something which is sacred cow - yet most accept it's not efficient. Even talking about NHS reform has government pollsters in a lather of despair.
So in the west the politics is ruling the roost: maybe we ought to say the little head is ruling the big head because as everyone knows that economics is sort of a river: it may be dammed, diverted and siphoned however it keeps coming as well as in the end those attempting to stop it should be overwhelmed.
Now you ask , when will economics win? I lived in Eastern Europe after economics eventually won the Cold War. That suggests in my experience Europeans will ultimately be living in some type of protected enclave where those outside have all the most recent gadgets and they'll be stuck with a classic ipad: buildings will not be repaired and infrastructure will creak and barely work. The inevitability of economics suggests that is how the EU is heading: a failing totalitarian state.
The reality is as to have state spending - we have to generate enough wealth to invest in that spending. That is the economics from it. Furthermore that wealth must also must grow and become readily available to reinvest in new projects to create more wealth to help keep paying your bills. In the socialist/communist system the necessity to invest is ignored and inefficiencies sidelined within the need to maintain the system.
In the united kingdom the Blair/Brown years saw an enormous numbers shuffled onto welfare dependency often called disability. It was exactly the same to the communist regime allocating every new member from the workforce employment - whether or not a brand new employee was needed. It made Communist business hopelessly inefficient in terms of manpower: whilst pushing people into welfare dependency just gets in cost to the tax payer - net effect is the same - much less money for investment and for that reason fewer, and finally no new jobs.
