Deep Macroeconomic Wisdom: When You're Broke, You're Broke
Wow. Did this guy take me seriously! A few more thousand like him and we could see some real economic pain...oh, wait...we are seeing economic pain, at least some of us.
On another note, anybody who has heard me fulminate over dinner, drinks or otherwise about the expected path of our country's and various states' fiscal reckoning (and you know who you are!) know that I do not think our political system can deal with our fiscal challenges. Like a drug addict, we have to hit rock bottom. Literally the government employee paychecks, the pension checks and the tax refund checks have to simply stop coming in the mail before we will change course and rethink our big goverment model. Victor Davis Hanson expresses this exact view quite better than I could:
"Bankruptcy, not politics, is the final arbiter: Individuals, firms, and nations either buy particular bonds or they don’t. And a nation like Greece, in turn, either pays what it has borrowed or it doesn’t. All the op-eds in the New York Times cannot change that fact."
You can seemlessly substitute California, New York, New Jersey, or Illinois as needed. Thus Chris Christie looks like a macroeconomic genius when he states that "unlike the federal government, the state of New Jersey can't just print money." People buy bonds or they don't, New Jersey pays back what it owes or it doesn't. It has the money to mail a pensioner a check today or it doesn't. Just raise taxes, say the unions. Well, you can raise taxes all you like, if guys like that small business owner in the Instapundit post don't leave the state outright, they can do what that guy is doing and ensure that all the people he patronizes have no income to speak of either. I say good for him, politicians and their union cronies have effectively been saying "f*&k you, pay up and shut up" and he is saying back "no, f*&K you, you can go broke while I sit this one out."
On another note, anybody who has heard me fulminate over dinner, drinks or otherwise about the expected path of our country's and various states' fiscal reckoning (and you know who you are!) know that I do not think our political system can deal with our fiscal challenges. Like a drug addict, we have to hit rock bottom. Literally the government employee paychecks, the pension checks and the tax refund checks have to simply stop coming in the mail before we will change course and rethink our big goverment model. Victor Davis Hanson expresses this exact view quite better than I could:
"Bankruptcy, not politics, is the final arbiter: Individuals, firms, and nations either buy particular bonds or they don’t. And a nation like Greece, in turn, either pays what it has borrowed or it doesn’t. All the op-eds in the New York Times cannot change that fact."
You can seemlessly substitute California, New York, New Jersey, or Illinois as needed. Thus Chris Christie looks like a macroeconomic genius when he states that "unlike the federal government, the state of New Jersey can't just print money." People buy bonds or they don't, New Jersey pays back what it owes or it doesn't. It has the money to mail a pensioner a check today or it doesn't. Just raise taxes, say the unions. Well, you can raise taxes all you like, if guys like that small business owner in the Instapundit post don't leave the state outright, they can do what that guy is doing and ensure that all the people he patronizes have no income to speak of either. I say good for him, politicians and their union cronies have effectively been saying "f*&k you, pay up and shut up" and he is saying back "no, f*&K you, you can go broke while I sit this one out."
posted by Donny Baseball at 11:07 AM
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