BENEFICENCE (CHURCH AND STATE): Jamie Whyte: Politicians and the Economy - WSJ.com

Jamie Whyte: Politicians and the Economy - WSJ.com
Somehow it all gets down to which of the three schools of economic thought (e.g. vis-a-vis the 1930's Depression) one gives credence to.

1) The Keynesian School (discussed in this article) and close to the heart of socialists and union members - also read: "The Free-Lunch School".

2) The Monetarist School (think Milton Friedman).

When one excludes the fact that there is a third school (see below), the monetarist school makes sense. However, thanks to Ben Bernanke (flooding the economy with the money the monetarists thought was missing in the Great Depression) and President Obama (validating by his policies the 3rd school below), the monetarists dictum that a flood of cheap money is all that is needed to get an economy going, has now been shown to be false.

So here we are at #3.

3) The Laffer School. Here if taxes or regulations are too high, then growth won't take place.

Unions, most politicians currently in office and the socialist and entitled electorates don't even acknowledge this school exists. It implies a level of self-interest on the part of savers, investors and entrepreneurs that is just 'unacceptable'.

As this article notes, 52% marginal taxes are fine because they are supposed to have no impact on the economic investment or entrepreneurial actions of the individuals and businesses paying them; and, the funds are needed by government for all of the beneficent things it does (oh my gosh, 'beneficence' - sounds like some church or other? Well, maybe it's the same, Control of the many for the benefit of the few at the top!).