The Associated Press
Published: July 30, 2010
The already fragile economic recovery may be getting weaker.
Economists expect the government to report Friday that economic growth slowed in the April-to-June quarter as consumers bought less, builders pulled back further, and cash-hungry state and local governments cut spending.
I don’t wish to quote the entire article, because it is quite useless! Missing from the litany of economic woes are, well, actual economic woes.
No mention of the massive regulatory and taxation uncertainty spewing out from DC on a daily basis. You would have to be crazy or a moron to start or expand a business in this climate.
No mention of the historically epic levels of debt. Within our lifetimes, the mere debt service alone will consume the entire federal budget.
No mention of the insanity of the Feds borrowing money to fund moral hazard on a truly staggering scale. Subsidize failure, and what should you expect to get more of? Anyone?
No mention of multiple states and foreign countries being effectively bankrupt. Illinois and California and New York are mere previews.
No mention of the impending Federal bankruptcy. Add Medicare, Medicaid and Social Security, and you have the entire Federal budget. EVERYTHING ELSE from NASA to ADM subsidies to national defense to DEBT SERVICE is paid for with new debt. Chew on that for a minute.
I guess it was too much to ask for the AP to consult an actual economist before writing this article! Instead, it seems like they only talked to Keynesians. Look folks, if you didn’t study Austrian School econ, you might has well have studied astrology.
We are broke, B-R-O-K-E. We desperately need an aggressive program of spending and entitlement cuts coupled with massive pro-growth tax cuts and regulatory simplification. There is no way around it, the numbers do not lie (of course, you have to understand numbers first, and this may be a significant hurdle for AP writers) and the more our “leaders” rearrange the deck chairs on the Titanic, the worse the eventual sinking is going to be.