The IUSB Vision Weblog

The way to crush the middle class is to grind them between the millstones of taxation and inflation. – Vladimir Lenin

Daniel Hannan on France and Germany warning the US that we are spending too much

Posted by iusbvision on March 31, 2009

Why do people blindly follow governments which are intent on bankrupting them?

To some extent it is because in a crisis people want to give the benefit of the doubt to the guy who looksas though he has the answers. Frenzied activity can create the illusion that you know what you are doing. That certainly that happened in Britain and that was the background for the bail-out and stimulus package. Unfortunately it takes a momentum of its own because the bail-outs and stimulus don’t work and the government’s response is not to say “we were wrong” because they cant then turn around and tell the taxpayers that it was all a waste so they have to carry on. They make it worse. There is a dreadful, grisly logic to the thing where bail-outs beget bail-outs, ‘So we spent a bunch of money, so that didn’t work so lets spend another bunch of money; even more that will really work’. And once we find out that it didn’t work it’s too late.

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