ECONOMIC OPPORTUNITIES 'HERDED AWAY': Government, Individual Debt Hamstrings Recovery - WSJ.com
You are absolutely right about 'being herded away'.
Anytime the 'economic-utility' function is skewed, then things change.
Government substitutes both liberal and conservative utility functions by subsidizing and legislating.
It's very apparent here in Europe where so much low-tech and small-business is just taxed and regulated to the point business quits. A lot of it has to do with labor taxes and labor legislation.
Driving around today paying 23% VAT and almost 50% in taxes on buying a new car, one can't help but think of the Laffer Curve's law of diminished returns. It may seem like more income is going to government, but I doubt it; and, within a few years, the adjustments people make (like moving and closing businesses, having to make do with inefficient and costly to repair equipment, etc.) clearly weaken the economic foundations of the economy.
Socialists and Obama and his Democrats haven't a clue. It's like a totally different economic religion.
That's why people are rightly scared - i.e. those who likely also avoided the worst parts of the housing bubble.
But sadly, as I recall, they were in the minority.
Monday, June 27, 2011
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