Sunday, August 23, 2009

Reforming Government

"The growing list of government dependents makes it less likely that we can reverse the trend. There are too many who have allowed themselves to become dependent on the dole in an endless variety of reforms. Expenditure increases are built into federal legislation by formulas and are not subject to specific authorization. Thus the budgeting process is on automatic pilot and must accommodate itself continually to an ever higher base. Those "entitlements" are one reason that the budget is said to be out of control. If Congress approved now new programs, the future increases would still be forthcoming.

Should the redistributionary phenomenon continue, then the inflationary one will also persist. For in the absence of moral restraint, which would insist on paying for what one receives, the sums required to supply the wards of the state will not be covered by taxes and the balance will be provided by printing money. The debtor class, which has benefited from inflation, is so enormous and so influential that it is difficult to see how the political will could ever be summoned to stop the currency depreciation. Every time the recessionary part of the business cycle begins, the cries for more monetary expansion overwhelm the political system, as bankruptcies, defaults, foreclosures, and other evidences of overborrowing increase. People do not want to repay their debts in currency of the same value as they borrowed." Idols For Destruction page 281

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