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.