Thursday, October 6, 2016

Summers & Rubin Sing a Tired Old Song

Larry Summers and Robert Rubin, long time Democratic Party stalwarts, have each penned an op-ed in recent days supporting the same ole, same ole:  more big government spending is the answer, both for the US and the world.

These op-eds are sitting alongside articles that show that world debt, private and public, has spiraled completely account of control.  Debt in the developed world is now three times the level that was considered, just a decade ago, as unsustainable.  I guess Summers and Rubin have revised their views as to what is unsustainable, just in time, I note, for the election.  Good timing guys!

Neither Summers nor Rubin has any concern that government regulations have all but eliminated new business formation and effectively destroyed our commercial banking system.  I guess their view is that, even though, increasing areas of the private sector are being outlawed (don't forget health care), nevertheless, especially after reading that Hillary plans to confiscate at death any significant wealth creation, entrepreneurs will rush out in celebration of "infrastructure spending" and get the economy rolling again.  No chance Larry...Robert.

Entrepreurs are scared to death.  Western economic growth is over.  "Infrastructure spending" is little more than a phrase which translates to "transfer income and wealth from average Americans to our political friends."  That's the plan and Summer's and Rubin's friends are well aware of that message.

The $ 800 billion "stimulus" package of 2009, passed with Summer's and Rubin's enthusiastic trumpeting, produced almost no infrastructure spending -- even though, "infrastructure spending" (wink...wink) was their main reason for endorsing the package.  Instead the "stimulus" package was used almost exclusively for political payoffs to friends of Barrack and Bill.  But, in that sense, it did what was intended by its supporters.

Now they want more of the same.

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