A few days ago I proposed that fixing the deficit was impossible, because governments cannot cut spending, not until the Mongols appear on the horizon.
But suppose there really is an Easter Bunny, and we really could cut spending. What should we do?
I'm glad you asked. First of all, we should understand that we are starting in a currency or inflationary crisis. Despite what you have hears, it is quite easy to end an inflationary spiral. Just go look at Germany in 1923. At some point in 1923 the Weimar government appointed a chap to replace the currency with a new one "backed" by new debt, and there would be no unlimited printing of money. Bang. End of hyperinflation. Who knew it could be so easy? Venezuela, please copy. By the way, if you had your money in stocks or gold in the post-WWI period in Germany, you did OK.
But then what? Here's what I propose:
If we did all what would it really save? I'm glad you asked that. Here are the US government spending numbers for 2016, the last year for which we have state and local data, from our good friends at usgovernmentspending.com. The numbers are for total spending: federal, state and local.
Now, since total spending in 2016 was 35.98 percent of GDP you can see that government spending would reduce to 12.93 percent of GDP if we cut out all the programs that people could easily do for themselves.
Wow! Imagine government spending at 13 percent of GDP. Imagine what it would be like living in an America like that!
The only problem is that it could never happen. Because Milton Friedman wrote many years ago that government always taxes up to the maximum that the people will tolerate. So the problem would be that even if we did "privatize" (actually "socialize," because "society," as in each on of us, will pay for pensions, health care, etc., instead of government) all the programs I propose the ruling class would still find ways to buy the support of the voters at election time and would still end up taxing us up the ying-yang.
But suppose there really is an Easter Bunny, and we really could cut spending. What should we do?
I'm glad you asked. First of all, we should understand that we are starting in a currency or inflationary crisis. Despite what you have hears, it is quite easy to end an inflationary spiral. Just go look at Germany in 1923. At some point in 1923 the Weimar government appointed a chap to replace the currency with a new one "backed" by new debt, and there would be no unlimited printing of money. Bang. End of hyperinflation. Who knew it could be so easy? Venezuela, please copy. By the way, if you had your money in stocks or gold in the post-WWI period in Germany, you did OK.
But then what? Here's what I propose:
- No government pension plan. In a nation with not just Fidelity, but Vanguard, there is no need for a government Social Security plan costing about a trillion a year. And government employee pension plans that are bankrupting the states. If you insist on compulsion, then force people to save 10 percent of their wages, each in their own Personal Wealth Account at Fidelity. Or Vanguard. But what happens if there is a crash and people can't afford to retire? Good question. People have to put off their retirement for a few years, that's all. Which means that they are contributing to the economy by working and creating products and services. But what about people that fall through the cracks? I have one word: billionaires.
- No government health care. Do you know what would happen? The girls would make sure that the man in their life had a decent health-insurance plan. Or they would just present themselves as helpless victims when they got sick and get some billionaire charity to take care of them. At end of life? Well, it would depend on the daughters. But here is what I wonder. I wonder what health care would look like if it was run by Wal-Mart -- or Jeff Bezos -- instead of by rich-bitch doctors and political hacks.
- No government schooling. I tell you, if the government schools were run by and for conservatives our liberal friends would be screaming the house down. But hey, if just about every teacher and every professor and every administrator is a Democrat: no problem. But, you ask, how could we afford to educate our own children when student debt is already ruining our young adults? Perfectly simple. We would reintroduce paid child labor. We already have unpaid child labor as children are forced to work every day in Government Child Custodial Facilities -- for nothing. I would have most kids leaving school before high school and entering employer-paid apprenticeship programs. And before that? Most mothers are up to the challenge of home-schooling. And for those that can't I recommend billionaires. By the way, don't forget that the poor helpless Irish in the Catholic Church organized a complete education system for Catholics in the 19th century when Catholics in the US were the poorest kind. And then there are billionaires.
- No government welfare. In the 19th century "everyone" belonged to a mutual-aid society, whether a labor-union, the Masons, the Elks, or the Oddfellows. If you insist on compulsion, I suggest that people be forced, at the point of a government gun, to belong to a mutual-aid society. The thing about mutual-aid societies is that they have a way of dealing with the grifters and scam artists that want to take but not give. But what about people that have fallen into poverty through no fault of their own? I have two words for you: family and billionaires.
If we did all what would it really save? I'm glad you asked that. Here are the US government spending numbers for 2016, the last year for which we have state and local data, from our good friends at usgovernmentspending.com. The numbers are for total spending: federal, state and local.
| Function | 2016 Spending Percent GDP |
| Pensions | 6.87 |
| Health Care | 8.14 |
| Education | 5.60 |
| Welfare | 2.44 |
| TOTAL | 23.05 |
Now, since total spending in 2016 was 35.98 percent of GDP you can see that government spending would reduce to 12.93 percent of GDP if we cut out all the programs that people could easily do for themselves.
Wow! Imagine government spending at 13 percent of GDP. Imagine what it would be like living in an America like that!
The only problem is that it could never happen. Because Milton Friedman wrote many years ago that government always taxes up to the maximum that the people will tolerate. So the problem would be that even if we did "privatize" (actually "socialize," because "society," as in each on of us, will pay for pensions, health care, etc., instead of government) all the programs I propose the ruling class would still find ways to buy the support of the voters at election time and would still end up taxing us up the ying-yang.