Talya wrote:
Lex Luthor wrote:
Talya wrote:
Lex: Inflation is one of the government's ways of ensuring that nobody gets to keep their wealth, and fewer people get ahead of the system. Debt is the government's way of spending your grandchildren's money. Basically, it's ensuring we stay nice, subservient wage-slaves.
A balanced budget and a stable cost of living are FAR more important than unemployment, which will resolve itself if the conditions for businesses to thrive in are favorable.
I disagree. You can keep your wealth if you invest in ways that are inflation-proof.
Debt can be a great tool to finance all sorts of projects. For example building highways, schools, skyscrapers, airports, etc. Using debt can actually increase economic growth and create jobs, although it also might cause more instability and inflation. If the debt is in the government's own currency, then it's not trapped in it because it could just print more in the worst case scenario. Governments that use debt effectively have an advantage over ones that don't.
That's the thinking that's **** up the economy for the last 85 years.
In short: Hayek was right. We've proven Keynes wrong with a century of **** with the economy to our own detriment.
I've thought about this topic a lot over the last month, and I think I'm switching to the "government should always keep to its budget" camp, even if loans and increased spending can help in the short or medium term.
On a pragmatic level, I think loans and overspending gives better results in some situations if done correctly. For example, if the Nazis are going to invade, the government might need to issue lots of bonds in order to raise a larger army. However, I would rather live in a world where governments are much more limited in scope. Modern liberals, I think, are more on the side of pragmatism.
Perhaps it's a pointless cause though because in the long run, the fittest society will succeed and dominate others, and having a powerful, large, and effective enough government probably leads to the most geopolitical domination. Like a survival of the fittest of cultures. But large governments always become incompetent eventually, and it always seems to turn into a "fall of Rome" situation. So perhaps the world geopolitical situation will always be in flux. Probably the longer a government lasts, the more cancerous it becomes internally, and it eventually destroys itself as a result of its incompetence and bloat.
I think the way the United States was originally founded was a balance between idealism (the Constitution limiting powers) and pragmatism (the President has a lot of power to quickly fix situations). I think in recent times, perhaps since FDR, we've shifted too far towards the pragmatic side.