Tuesday, August 25, 2009

Democratic Paradox

The Democrats have an interesting plan. Faced with the failure of 90 years of Progressivism and New Deal redistribution; a stagnant real hourly wage; a failed, monopolistic investment and commercial banking system that is the product of New Deal social democracy; an international monetary system that is a Rube Goldberg device fastened to a casino; wasteful real estate and stock market bubbles; and cities that have survived by gutting their economic identities and riding the crest of the same stock and real estate bubbles, the Democrats aim to further restrict economic opportunity; raise taxes; smash economic innovation and impoverish future generations. The Democratic paradox is this: when faced with economic decline, resolve it by deepening the decline. They did it during the depression, causing the 1930s to constitute a much longer correction than any before the existence of the Fed, social democratic programs and Keynesian monetary policy. They aim to do it now.

Cure decline by deepening the decline. The Democratic paradox.

1 comment:

LL said...

I don't know that it's a paradox. I think they know what they're doing. By deepening the recession, they are allowed to put "emergency measures" in place that strengthen their hand. Sone of the stimulus money goes to groups like ACORN that work hard on the Democratic agenda. In fact, the stimulus was a good vehicle to hide pay-offs to political cronies.