Early in June I wrote a blog post with a link to the Heritage Foundation essay that created what is now one of Instapundit's currently favorite graphs.
How much is the explosion in Federal spending a cause for worry? A recent article explains the difference between the "monetary base" and the "money supply" in an attempt to quell inflationary alarmism. But the argument used is ephemeral: soon banks will begin giving more loans (after all, it is how they create profit).
As I mentioned back in January, spending is not at unprecedented levels.
Rather, it is the "double play" of both Congressional stimulus bills and the Fed increasing the monetary base when the latter would have sufficed.
And the fact that huge amounts of Federal government are now perceived as normal.
And the continued lie that this financial crisis was caused by too little regulation rather than too much government interference -- as if more Federal oversight is the key, rather than new ways of keeping financial sector healthy.
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