Note to Our Progressive Friends: Check Your Arithmetic

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Critics of crony capitalism are found on both the left and right. This creates a very interesting alliance. For example, left and right work together to audit the Fed. We can also audit each other’s ideas for factual accuracy.

I like the story below by Adam Green in Politico entitled “The Mandate for the Left.” It is a useful piece because it explicitly describes the Progressive agenda at the present political moment: raise taxes on the wealthy, end corporate welfare, which includes Medicare and Medicaid paying drug companies way too much, and do not, do not touch Social Security or Medicare benefits.

Adam added that government should also “invest in jobs” without bothering to define what he means or to explain why what he means will work. But apart from this lapse, the article has the great merit of being clear. It isn’t, like many such articles, just a cloud of rhetoric. It gives us specific proposals.

Looking at the proposals, we agree that corporate welfare is a big part of the crony capitalist problem and that there is an unhealthy alliance between drug companies and the government. For the other proposals, however, the math needs more work. If the government seized every penny of income from those making over $250,000, ended all corporate welfare, and took all corporate profits to boot, without destroying the economy, it still wouldn’t be enough to keep Social Security and Medicare paid for. There just isn’t enough money there.

The problem is that Social Security and similar entitlements are Ponzi Schemes, in the sense that they aren’t funded by participants but by the next generation. There aren’t enough people coming along. This is pointed out by the next article below published by Townhall. And, by the way, with the economy the way it is, the people coming along aren’t even able to find work.

One of the oddities of the present political dialogue is that Progressives are making it very clear that they don’t even want to cut Social Security or Medicare benefits for the rich. Apparently they don’t want those programs to be seen as welfare and as a result are willing to borrow money from China or print money in order to send rich people social security checks they don’t need. This is an opportunity for the Republicans. Instead of cutting the charitable deduction, which is their latest bad idea, they should cut entitlements for the rich. If they did so, maybe voters would no longer view them as the party of the rich.

Click here for The Mandate for the Left

Click here for More Evidence the Government is Running a Giant Ponzi Scheme