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Tuesday, June 29, 2010

Austerity Means "Pull The Plug"

Austerity is the best route because it means reducing the least efficient parts of economies.
Government spending is inefficient and wasteful.
I wish I had a big argument to support that assertion. Maybe it is just axiomatic.
Stimulus means taking money from the efficient and giving it to the failing. That just ends up with less for everyone.
So, right now people don't like austerity, but it is best in the longer run.

We should not be lavishing our energy and attention on failing enterprises. Businesses and governments should be allowed to fail. Bankruptcy is good for the community. It is pruning, it is getting rid of dead wood. It is not euthanasia, it is just pulling the plug and letting the dead die.
They call them zombie businesses.
We are much better off without zombie businesses.

On another note.

We should not be searching for new energy supplies. We should be learning to use a lot less energy.

We should not be trying to return to past levels of employment. We should let the labor force shrink. People not looking for work are not unemployed. In my household none of the four of us are employed. But tomorrow we could decide we want jobs and then there would be three more unemployed people.

We are producing and consuming more than enough. We don't need to grow the economy. We need to be content.

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