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28 April 2010 By Jacob G. Hornberger The Los Angeles Times is reporting that city
governments, who are suffering severe financial
strains, are looking to the federal government to bail
them out. And the federal government, our nation’s
daddy, is responding favorably. Congressional
Democrats are pushing a bill that would give cities
and counties $75 billion. That’s on top of all the
$787 billion in “stimulus” money that was sent to
localities last year. Of course, as well all know, U.S. city governments
aren’t the only ones who are experiencing tough times.
The Greek government is in desperate economic throes
as well. Like U.S. cities, the Greek government wants
a bailout too. The Greek government has borrowed money to the hilt
to pay for its ever-increasing welfare-state programs.
The debt in Greece has gotten so large that investors
are shying away from buying Greek bonds. They fear a
default, one that would likely cost them at least 50
percent of their investment. The problem is that Greek tax revenues are
insufficient to cover the interest on the debt, much
less reduce the principle. Moreover, Greek dole
recipients don’t want to let go of their dole,
insisting that European taxpayers, especially those in
Germany, help them out. As a backup plan the Greeks
are also looking to U.S. taxpayers to come to their
rescue, with the IMF serving as intermediary and
buffer to protect U.S. public officials from the wrath
of U.S. taxpayers. But as everyone knows, the U.S. government is
itself deeply in debt. It’s also spending money and
incurring new debt as if there were no tomorrow. It’s
also cranking up the printing presses to print up the
money needed to sustain this house of cards. Imagine that! All these deadbeat governments are
looking to a deadbeat government to bail them out. There really are some simple solutions to all this.
For example, at both the state and federal level drugs
could be legalized, which would enable federal, state,
and local governments to lay off lots of officials
whose jobs revolve around that immoral, idiotic, and
destructive war. But needless to say, all too many
public officials oppose losing their access to bribes,
payoffs, asset forfeitures, and political power that
accompany the war on drugs. Localities could also eliminate all programs that
don’t directly relate to crimes of a violent nature.
The problem, again, is that the people who benefit
from all these programs, including the public
officials, simply will not let go of their largess.
The problem at the federal level is no different.
Statists will simply not let go of their favorite
welfare-state programs, regulatory programs, and
warfare-state programs, even if they are taking our
country down. Consider the welfare-state programs that form the
biggest portion of federal domestic spending — the
so-called entitlements, such as Social Security,
Medicare, and Medicaid. All we would have to do is
repeal them, along with all other welfare-state
programs, departments, and agencies. Yes, I said
“repeal,” not “reform.” But when Americans hear that, they have a
conniption fit. As psychologically dependent on the
dole system as the Greek people are, they simply
cannot imagine that life could actually be possible
without a system based on the dole. So, while complaining about how bad federal
spending, debt, taxes, and inflation are becoming,
except for libertarians Americans remain committed to
all the things that the feds are spending money on.
The hope is that someone will come up with the magic
reform to make it work. It’s no different with respect to the regulatory
programs. Americans are so scared of speculators,
profiteers, bankers, illegal aliens, and drug dealers
that the thought of truly free enterprise — that is,
enterprise that is free of government control or
regulation — absolutely terrifies them. It’s the same with respect to the warfare state,
which also constitutes a large portion of federal
spending. Despite 8 or 9 years of continued
occupations of Iraq and Afghanistan, Americans are
still not willing to let go of their beloved empire
and its imperial adventures. Fear of terrorists and
Muslims now seems to match or even exceed people’s
fear of the communists, causing them to want to keep
the troops in the Middle East, Korea, Europe, Africa,
Latin America, and, well, all over the world. Dismantling all the welfare-state programs, the
regulatory programs, and the warfare-state programs
would resolve America’s fiscal problems immediately.
Alas, however, the American people are still not
prepared to let go of their socialism,
interventionism, and imperialism. Thus, America continues to travel down the same
road that Greece has traveled down. While the Greeks
are looking to German taxpayers and American taxpayers
to bail them out, who will be bailing out Germany and
the United States when they reach the point where
Greece is today? Jacob Hornberger is founder and president of The
Future of Freedom Foundation. |