Thursday, February 2, 2012

Why Do Politicians Love Keynes's Theory?

Keynes's Theory is not only, itself, logically bankrupt, it ultimately must cause bankruptcy to all those adhering to it. Politicians love Keynes's Theory because it provides them an excuse for believing that government spending and borrowing do not have limits. Thus, they can evade all responsibility for the negative consequences of their redistribution of private funds they strip from the economy. It is application of The Theory that gives them their unreasonable power.

Simple arithmetic logic explains why there must be a limit on government spending and borrowing. Tax money is not created from thin air. By its nature, taxes constitute "legalized theft." Taxes can be taken by government vultures only through a confiscatory process from those who, through their hard work, must first earn the money. The well of taxation is not without a bottom.

It is right thinking to criticize the greed of the political elite. But, the average citizen must also disabuse himself of a different kind of greed: the greed engendered in him by the insidious process of his accepting government largesse. It is upon this kind of greed that the political elite feed themselves at the expense of the citizenry.

The bottom line is: if the average citizen is not willing to resist the temptations offered by the political elite, to accept from the government money he has not earned, he has very poor standing to criticize the same activity from the political elite. "Why do you see the speck in your brother’s eye, but fail to see the beam of wood in your own? How can you say to your brother, ‘Brother, let me remove the speck from your eye,’ while you yourself don’t see the beam in your own? You hypocrite! First remove the beam from your own eye, and then you can see clearly to remove the speck from your brother’s eye.
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The average citizen must stop suspending logic and understand that the largesse does not come from the government. It comes from his fellow citizens (after the government has taken its "pound of flesh" from it.) A key element that can lead toward economic salvation is reduction of the dependence of the citizenry on taxation-funded benefits. This will, in turn, reduce the power of politicians to create new reasons to raise taxes from which, like the mafiosi, they will "wet their beaks."

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