Today my friend David Gaffen tweeted
Exclusive: Puerto Rico creditors asked to take 45 pct cut on debt – sources https://t.co/MhDOsZbGeJ via Reuters
— David Gaffen (@davidgaffen) January 30, 2016
Puerto Rico is bankrupt. But, so is Illinois. So is Chicago. So is just about every city, town and county in Illinois. So is NY. So is NJ. So is Kentucky. So is California. If governments across the nation did an honest actuarial accounting of their liabilities, along with their ability to pay them, a majority of them would be bankrupt.
Pundit Glenn Beck has been scaring his listeners with the thought of “Great Depression times 100”. In San Francisco and New York, they are going to allow public urination. Is it any wonder people like Socialist Barry Sanders and businessman Donald Trump are doing well with pollsters?
One of the things that should make people very optimistic about the future is the technological innovation that we are starting to see daily. The way we live life will be changed dramatically in the next twenty years. It will be easier. But, instead of being optimistic people are fearful of innovation.
There is no doubt that we are at a crossroads in America. In business when this happens, they restructure. Assets are sold off and repurposed. Debt is renegotiated. Sometimes, new stock is issued. At the same time they do this, they fundamentally change their operations and management of the company. They don’t keep doing the same thing over and over again.
The model of government that Woodrow Wilson and Franklin Delano Roosevelt put in place doesn’t work. If you read serious history on Roosevelt, you will learn that Roosevelt put in place the New Deal not because of some world vision. He put it in place because of politics and it was a way to guarantee power.
In my own city of Chicago, we have a constant stream of corruption. It’s being reported differently but it’s nothing new. It’s been around for almost a century. School hierarchy is corrupt. Red light camera hierarchy is corrupt. It’s easier to find things that are not corrupt-or maybe it’s harder because there aren’t very many of them. The city is structurally, fiscally, and fundamentally broke.
The big government way to solve problems is come up with a policy, and then pay for it with fees or taxes. Solving problems with entrepreneurial innovation is met with penalties. In Chicago we have a cloud tax. First in the nation. We have a technology tax in our cabs, .50 cents per ride. We have an AirBnb tax. We already have the nation’s highest sales tax and some of the highest property taxes in the nation. Chicago still runs ever increasing deficits.
It is time for a NEW New Deal. But, because we have this albatross of system that has been steadily growing for the past 80 years, it’s awfully hard to restructure. It’s easy for beneficiaries of the system to scare people into doing things the same-even though that takes us down the path to fiscal destruction.
Big Government sees people as liabilities to be managed. Hence the policies put forward by big government politicians are always dead ends. Homeless problem? Let’s give them better grocery carts to get over curbs and maybe more comfortable chairs for them while they are sitting on the street. While were at it, let’s let them urinate in a public park. Nothing big government puts in place actually solves the core problem.
Instead, we ought to view people as raw assets that can improved, polished and set free. The way to solve it is through policies that encourage private economic growth. Any dollar spent by the government comes from taxpayers. That means taxpayers have one less dollar to invest. Getting rid of Big Government needs to be priority number #1 because Big Givernment’s attitude isn’t going to change.