Stop Digging - Editorial Commentary - Thomas G. Donlan - Barrons.com
What's also missing (but implicit) in Donlan's comments is that young people entering the workforce today (as for many years now) don't have the same opportunities to accumulate the wealth for a nice house, good education for their children (read: college), etc. as their parents or parents' parents had a number of years ago.
While we do hear the lament about real wages, we don't hear anything (except by Donlan above) about how we're are taking too much wealth from the productive sector and giving it to government.
This money to government, in the form of taxes (direct and indirect) is transferring to government the individual's choice of benefits. If such choices are so beneficent, why aren't they voluntary - i.e. not through taxes?
But, of course, the answer is, these benefits are going to those 'underprivileged' members of society who can't afford them - i.e. the great leveling effect of democracy.
Here, as Donlan points out, the populism bodes ill for producers and, eventually, it will for those who consume without earning.
The only question, as evident in Barrons this week, is that people don't know.
Sunday, December 13, 2009
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