Over The Top

Much of the conversation about the current economic crisis has been built on a foundation of analogy.  Namely, that these days are similar in kind of those of 1931.  But it may be that we are looking at the wrong model.  That we shouldn't be studying the lessons of the Great Depression but of the Great War, instead.

Comments

[Bruce Shields]

Sen. Sanders yesterday on the Tom Hartman show gave about 10 reasons why any investor should be very wary of making new investments, should the Sanders philsosophy be important in the "new order of things." He suggested limiting capital gains, taxing increases in stock price, and capping salary increases. Meanwhile, Mr. Obama in a press briefing yesterday stated that about 10% of the Stimulus Package should be spent "restoring lost jobs among teachers and other public workers." So applying that to Vermont, we will have our teaching staffs returned to where they were 8 years ago, before the number of students started to decline. Employment whether we need it or not? This could be an interesting few years ahead!

[Chris Campion]

The linked article is spot-on, but even those numbers are wrong. The federal government collects about 1.3 *trillion* dollars in individual income taxes each year. So although 800 billion needs to be allocated by our trusty elected officials (some of whom, like Sanders, haven't held a private-sector job in decades, and probably for good reason), what makes us think they'll be able to manage that any better or worse than they do with the 1.3 trillion they collect each year?

There is far too much money to be spent by the Federal government each year for it not to bias decision-making. If we need watchdog entities like the ACLU to make sure 3-dollar Menorahs aren't erected on school lawns, is there really any hope for citizens to expect we can control or even influence the behemoth that is Federal spending?

[Planman]

Dear Mr. Campion,
The answer to your first question is that we will do worse as we try and spend our way out of this train wreak. The answer to your second question is that there is no hope that citizens will be able to control or influence Federal spending. But you already knew that. The only possible hope for any of us in Vermont is to work within our own communities. By doing that we may be able to save what's left of Vermont when the dust settles, because whatever that may turn out to be, will be far better than what we'll find ourselves surrounded by.