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TopAustrianFool (64.59)

The Fiscal Cliff is Good for the Economy

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December 04, 2012 – Comments (2)

The Fiscal Cliff is actually a good thing, because it reduces government outlays, which is money that government takes from the real productive wealth creators in the economy and gives to wealth destructive spenders. Therefore, any GDP shrinking you see is due to the loss of current wealth destructing waste funded by government.So although deflation will ensue sometime in the Spring of Summer, over time this leaves wealth creators with more money and the economy should grow permanent wealth creating jobs that need no subsidies from government.The Fiscal Cliff is a good thing, and it will happen sooner or later.If we don't go over the Fiscal Cliff government outlays will be $3.3T, but if we go over the Cliff the outlays will be $1.7T. President Obama probably wants to the former rather than the latter, so I say call his bluff, grab his hand and depress the accelerator Thelma.

 

2 Comments – Post Your Own

#1) On December 05, 2012 at 12:49 PM, leohaas (33.01) wrote:

I am not an Austrian at all, but aren't you overlooking the massive tax hike here? Or do Austrians suddenly approve of higher taxes?

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#2) On December 05, 2012 at 2:59 PM, TopAustrianFool (64.59) wrote:

I am not over looking a tax hike because there is none. What you call a Bush Tax Cut is really more spending. It would be a tax cut if along with it Bush would have cut spending and increase the SS age.  Since Obama hasn't cut anything either all they are doing is basically still giving you an entitlement and not charging you for it, but instead inflating and incurring on debt anyway to pay for the money they are not charging you. So in essence it is nothing but more spending, so again if you allow the Bush Tax Cuts to expire then the govt will be spending less. That $1.2T is bigger than the tiny $100B in sequestration.

 The solution for the Economic problems is:

Allow the Bush Tax Cuts to expire.

Abolish the Estate Tax.

Increase the SS and Medicare elegibility age to 68 yrs.

Get rid of Obamacare.

Cut the Federal Govt outlays by $2.0T over 10yrs.

Freeze federal hiring by attrition.

Increase armed service members Health Insurance to $1500/fam plan.

Allow Health Insurance interstate competition. Abolish price controls in healthcare and deregulate the healthcare industry.

Abolish the Dept. of Labor, Dept. of Agriculture, EPA.

Shrink the FDA.

Cut the NIH by 50%, NSF by 10%.

Limits the Fed's ability to decrease interest rates.

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