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URL:  https://boards.fool.com/quoti-have-yet-to-understand-how-cutting-33971547.aspx

Subject:  Re: Bogus Fiscal Crisis Date:  2/21/2013  4:16 PM
Author:  rfaramir Number:  394771 of 392

"I have yet to understand how cutting spending, leaving our infrstructure to further decay, and thowing millions of people out of work will improve our economy."

I'd be glad to try to explain it to you, tomlongrpv!

Government spending is always against the best interests of the people they rule. For example, if a business needs a subsidy to survive, it is by definition not desired by consumers and should go out of business. Keeping it alive means destroying wealth. The politician pandering to a special interest to prop up said business damages the well-being of the people, who through their free economic choices are NOT served by said business. Taxation is always damaging (no explanation needed). Government services, while not 100% wasted, are *always* done more poorly (higher price, lower quality, lower availability or over-availability) than when the free market provides them.

So, by economic law, cutting government spending is a good thing.

"our infrastructure" is part of the problem. It should not be 'ours', it should belong in private hands. Only public property suffers the Tragedy of the Commons. Private property is cared for, its capital value preserved and enhanced over time. New supply (e.g., of roads, bridges, electric wires, dams) comes into use to serve the consumers on the free market at the rate the consumers demand. When the state provides these things, they happen when either enough voters demand them or, more likely, when it is convenient for a lobbyist and his paid (corrupt) politician to declare by fiat that a new road, bridge, etc be constructed. Maybe it is needed, maybe it is a Bridge to Nowhere. The central planner cannot know which (and doesn't care), whereas entrepreneurs take risks with their own capital to serve the consumers and have profits and losses to tell them when they are right or wrong.

"throwing millions..."

When people are laboring in non-optimal lines of work, they need to be re-allocated. This is a painful part of putting things right but it is necessary. The damage was done during the inflation-fueled boom; the bust sets things right, *if* government gets out of the way (stops propping up zombie businesses) and lets the reallocation happen. It's not just workers, it is also the capital that is being mis-handled by poor businessmen. The businesses have to go bankrupt so their wealth-destroying capital can be purchased by wealth-creating businesses.

These are the natural and necessary consequences of government intervention into what was a free market. Liberty needs to be returned to the people, property needs to be respected and cared for by individual owners. Socialism and fascism have no place in a free and prosperous society. (Socialism and fascism are essentially the same thing, by the way, which I can explain, too, if you like.)


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