HidalgoGustafson630
From GunGame5 Documentation
Politics Versus Economic Reality: We Will All Lose
In the western world there is quite obviously a battle between the politics and the economics. It's clearest is Europe where - all most as you - the economists are saying the Euro is condemning many to long-term austerity and inevitable poverty and it is therefore unworkable - but somehow the politicians don't seem to have it: or do they think the alternative is worse? And also the reason for this issue is above all else the commitment to excessive government spending primarily driven by the welfare state. And in the united states, that great bastion of free enterprise and the American dream, is in the middle of a battle to create the identical welfare state to those 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 can bribe the public using the public's money." Which appears to be happening today. De Tocqueville is interesting because in those days France, and indeed the remainder of Europe had primarily aristocratic rule and that he would be a liberal who supported the idea of democracy. But he was concerned about the long run 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 the EU - in a desperate attempt to save the Euro - has decreed that member states should have a balanced budget. Of course the reason they did not have a balanced budget was because politicians desired to bribe their voters as well as their financiers (these day almost exclusively big corporate).
Nevertheless the EU is fulfilling De Tocqueville prophecy by trying to sideline democracy - in both Greece and Italy an attempt by democratically elected leaders to even think about the chance of leaving the Euro resulted in their instant removal by scheming EU apparatchiks and their replacement by so-called Technocrats. When the EU has its way I suspect the Greek election due soon will be postponed as will every other election that threatens a vote which will destabilise the union.
Of course the total absurdity from the EU is as it clamps down heavy heavily on rising budgets in EU members states its very own budget expands exponentially with screams of protests if anybody suggests otherwise.
But the simple concern is this - can democratically elected governments really cut the cash 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 can make the argument - and win it - using their voters. These days, with politicians who use opinion polls instead of conviction as their guiding light, that seems a big ask. Or perhaps is it conviction of the wrong kind - a conviction towards the liberal democratic model that believes the state should 'take care' from cradle to grave. The situation in america seems to be the most peculiar - with Europe to illustrate what goes on when an excessive amount of is spent of social largesse it's extraordinary the united states seems to be following the same model. You don't have to be a member of the Tea Party to see something must 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 definitely an illustration of the issues of trying to change something which is sacred cow - yet most accept it is not efficient. Even referring to NHS reform has government pollsters in a lather of despair.
So in the west the politics is ruling the roost: maybe we ought to the little head is ruling the big head because as everyone knows that economics is sort of a river: it can be dammed, diverted and siphoned however it keeps coming as well as in the finish those trying 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 residing in some form of protected enclave where those outside have the most recent gadgets and they will be tied to an old ipad: buildings won't be repaired and infrastructure will creak and barely work. The inevitability of economics suggests that is where the EU is heading: a failing totalitarian state.
The truth is if we are to possess state spending - we need to generate enough wealth to invest in that spending. That's the economics from it. Furthermore that wealth should also must grow and be readily available to reinvest in new projects to create more wealth to keep paying the bills. In the socialist/communist system the need to invest is ignored and inefficiencies sidelined in the have to maintain the system.
In the UK the Blair/Brown years saw a vast numbers shuffled onto welfare dependency known as disability. It was exactly the same towards the communist regime allocating every participant from the workforce employment - whether or not a new employee was needed. It made Communist business hopelessly inefficient when it comes to manpower: whilst pushing people into welfare dependency just transfers to cost to the tax payer - net effect is identical - much less money for investment and therefore fewer, and finally no new jobs.
