Monday, February 11, 2013

Santa Government

     A recent survey found that 50 percent of the people in
this county believe that the USA's best days are behind us.  This
country has clearly been in economic decline for more than four
years.  This doesn't mean recovery is impossible.

     The basic problem faced by the USA is quite simple.  As
a nation we are trying to consume more than we produce.  Most
people know that this is impossible.

     For a while we can supplement our production through
borrowing from those outside the USA.  Most people also know
that this can't go on forever.  Perhaps they believe it can go on
for the rest of their lives.  After that it will be someone else's
problem.

     Still, millions simply demand that government keep the
goodies flowing.  These recipients of government largess don't
worry about where the goodies will come from.  They have child
like faith that government can somehow deliver.  Demagogues
who claim all we need do is tax the rich contribute to the false
belief.

     Young children are often taught to believe in Santa Claus
and a bottomless toy bag.  When they grow up, most face up to
the reality that there isn't any Santa Claus.  Belief in Santa
Government can, and commonly does, survive for a lifetime.

     People find it easy to believe what they want to believe. 
Not surprisingly many want to believe that someone will take
care of them.  For a time Santa Government has delivered on
some of its promises.  This reinforces the belief in Santa
Government.

     Many people don't like to be reminded that Santa
Government can give only what it takes from those who produce
it.  Cripple private sector production and Santa Government dies. 
Dead Santas don't deliver goodies.

     Our investment capital is tied up in partially completed
consumer goods.  Factories, mines, railroads, office buildings,
etc. can all be used up completing goods for us to consume. 
Thus, for a time we can consume without replacing the used up
facilities.

     This is no different from using up a sack of flour to
make bread.  You can still eat the bread.  The problem comes
when there is no replacement sack of flour to make more bread. 
By depleting investment in production facilities, Santa
Government can keep the goodies flowing for a while.

     As the investment sack empties production will drop. 
Someone will have to settle for fewer goodies.  Soon "someone"
will be spelled "everyone."

     Politicians and government making false promises are
largely responsible for creating the false belief in Santa
Government.  Government can't lead us out of the trap it set.  If
Santa Government closes the goody bag, believers in Santa
Government will rebel and vote the incumbents out of office. 
Our only hope is that millions of the true believers in Santa
Government will see the light and vote for government to reign
in spending to a sustainable level.

     For those who believe in Santa Government there is no
rational reason to reign in government spending.  They believe
Santa Government can deliver.  Instead of voting to crimp the
spending of Santa Government, they will vote against the
"Scrooges" who claim their is no Santa.

     Unless the best days of the USA are to remain behind us,
we must find the way to destroy the belief in Santa Government. 
I have been endeavoring to do this since I began writing this
column in 1994.  I  have no evidence that I have shaken even
one person's belief in Santa Government.  I hope that I have.

     There are many individuals on the national scene with far
larger audiences than I have attacking the belief in Santa
Government.  If the last election proves anything, it is that the
Santa Government cult is bigger than ever.  If individuals such
as Ron Paul and John Stossel haven't stemmed the rising tide of
belief in Santa Government, Who can?  The most anyone can do
is keep trying.

aldmccallum@gmail.com
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Copyright 2013
Albert D. McCallum
18440 29-1/2 Mile Road
Springport, Michigan 49284

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