Tuesday, May 25, 2010

I don't know what this guy is smoking

but can we please take it away from him?

Private pay shrinks to historic lows

The shift in income shows that the federal government's stimulus efforts have been effective, says Paul Van de Water, an economist at the liberal Center on Budget and Policy Priorities

"It's the system working as it should," Van de Water says. Government is stimulating growth and helping people in need, he says. As the economy recovers, private wages will rebound, he says.
(emphasis mine, of course)

I'd like to say Van de Water must be mistaken, but I have no doubt he means every word he says.  I'm certain he's happy that the .gov is now the source of a record amount of "income".  I'm just as certain he's in denial of the obvious problem with the current state of things, which is explained quite clearly earlier in the article: The federal government depends on private wages to generate income taxes to pay for its ever-more-expensive programs.

As Margaret Thatcher said, the problem with socialism is that, sooner or later, you run out of others' money to spend.

1 comment:

BobG said...

It never fails to amaze me how some people think that the government is producing wealth when it pays out wages; you're just moving it around in a closed system without producing anything new.

All Uncle Sam is doing is moving money from one pocket to another, but that doesn't mean he's making money on the deal.