Economic myths, Chronicle editorial

I’m surprised by the myths some people believe about economics, taxation, and government. People aren’t stupid, but they do seem to be naïve. They repeat something they read on a website or heard from a talking head as if it were gospel truth.

Ironically, they then accuse people like me of ignorance. Sure, I’m no expert, but I have a little common sense. And I try to be frank. I do not hide my political proclivities or pretend to be something I’m not, like the political Left often does. No, I disclose up front that I am a libertarian-leaning conservative. And I have some truth for you. The truth about five economic myths.

Myth #1) Bush is responsible for the deficit. Except Bush cannot spend tax money. Not back then, and certainly not now. Certainly Bush was no conservative. Far from it. His “compassionate” conservatism was virtually indistinguishable from the big spenders in Congress.

What we need to understand it is Congress that spends money. Article 1, Section 8 of the living-when-I-need-it-to-be Constitution says, “The Congress shall have power to lay and collect taxes…” Article 1, Section 7 of the Constitution-that-only-matters-when-it-agrees-with-my-politics says, “All bills for raising revenue shall originate in the House of Representatives…” That means every government expenditure must be authorized by the House. Period.

This leads me to myth #2. Obama did not “inherit” anything. Democrats have controlled Congress since 2007, which included then-senator Obama. He and a whole host of other Democrats, along with their Republican co-conspirators voted in favor of every single budget, every single wasted bailout, and every single Wall Street fatcat. They had every opportunity to do something about the debt. But alas, they never met a spending bill they didn’t like.

Myth #3: Unbridled capitalism is to blame. Um, no. There is no such thing. For the past few decades our economic fortunes have been governed by Keynesianism. And Keynesianism almost always manifests as increased taxes and increased regulation of the economy.

This big government Keynesianism is supposed to prevent economic disaster by “reining in” capitalism but nevertheless has led us to our present situation. Indeed, all the laws and regulations passed since the Great Depression did nothing to prevent the Carter malaise, the 2001 recession, or the 2008 Great Recession. Ergo, the “solution” is the problem.

Oh, and by the way. Don’t be fooled by the cheerleaders in the media. Things are much worse than anyone is letting on. I know you know this in your bones, but you want to believe in your saviors. I’m just here to offer you the red pill, Neo.

Myth #4: Tax increases will lower the national debt. Except this has never happened. But what about President Clinton, you ask? Nope. Not even then. Check it here: http://130.94.230.21/debt_history.htm. Yet for some reason tax increases are the only “solution” the Left ever advocates. They seem to believe that it is better to give your money to the government than it is to keep it for yourself. Their highest priority is how much money government has available to it.

This leads me to myth #5: Only Democrats care for the poor, the average Joe, and the environment. Nope, sorry. The sole purpose of politics is the acquisition, accumulation, and perpetuation of power. That’s what politicians care about. The issues you care about are only buzzwords used to increase the power of politicians who love to spend your money.

But you believe myth #6: Government is benevolent. It isn’t. Even when government policies are going the way you like, power is being exercised. All it takes is a change in leadership and suddenly you find that the power you loved is now the power you hate. The problem is power.

So there you have the truth, my friends. From my favorite movie, the Matrix: “I'm trying to free your mind, Neo. But I can only show you the door. You're the one that has to walk through it.”