Tuesday, March 01, 2011

Economic Fantasies of the Left

From Kay at Blue racine: Well, I don't get your logic then. You want people to make less money so you can pay less in taxes and then those people will spend less in stores like yours and that benefits you how? I'm going to take a wild leap here and guess your college degree wasn't in accounting or basic economics type of areas?

So according to Kay, I should be opposed to Governor Walkers budget because it would be in my financial interest to do so. Notice the assumption that financial self interest should be the motivating factor here, that we should use the political process to get what we can get. And they call us greedy and selfish.

Now on to the economics. Kay's assumption is that if the government pays people more they will spend more, like at my store, and everything will be peachy. There is no apparent consideration of where the money comes from to pay the government union folks the additional money.

I wish Kay's economic illiteracy was the exception on the left. Unfortunately, this thinking is the norm in the party, trickling down to Kay from President Obama.

I have read somewhere or other that a bad economist will look only at all the wonderful things you can do with money, like ensure a fine standard of living for public employees. A good economist will consider the other potential uses of said money. Like Kay, the left only considers one side of the equation.

In contrast, I have to look a bit deeper. Where does the money come from to pay greater than the market rate for public employees? Well it comes from the profit making sector of the economy, ie the private sector. What will happen if too much money is pulled from the private sector? The private sector will have less money available to pay salaries or reinvest in other profitable, that is, taxable ventures.

Obviously there are a lot more problems with the Kay/Democrat economic theory. To name a few, there is a temptation to tax the hell out of the rich/most productive as though that would have no consequences on the economy. Or to simply print more money and pretend it retains its value - reality be damned. Or to borrow and keep pushing the problem down the road as though our creditors will keep lending and forget to collect.

It is true Kay, I don't have a degree in economics or accounting. But I do have a functioning brain and I can observe the obvious. The lefts fantasy economic theories have been tried repeatedly and have failed repeatedly throughout history. And they are failing here again.


Anonymous said...

Why don't we pay gangs of kids $20 an hour each to run around smashing windows. Think of how much money would be pumped into the economy! Hell, I just closed the garage door on my windshield just so I could add to the economy.

Nemo said...

Anon, isn't that AmeriCorps?

Anonymous said...

No, this would be strictly consulting. AmeriCorps is a full-service organization that teaches that you are entitled to the money without putting forth the effort to smash windows.

Nemo said...

Thanks for clearing that up. Heh.

Nemo said...

Take care Denis. I enjoy your sparing with the local left over at kay's (it has the look and feel of a bunch of midgets fighting Andre the Giant without the high ticket cost!) but you seem to be on brink of banishment.

Denis Navratil said...

Nemo, I am surprised I have lasted this long to be honest. Have you noticed the Siren is no longer responding to our provocations?

Nemo said...

I liked her tone when she was responding, ideas could be exchanged instead of the parade of pejoratives we usually get shot at us. Don't get me wrong, I love getting a GFYS or being called an unhappy french black woman by sean, but the change was refreshing. I figure she might just be to busy as of late to reply.