Dec 042012
 

Just about a month ago the worst President in the history of the United States was re-elected by the dumbest electorate in history.

It is official, the Looters and Moochers now outnumber the Makers and Creators. The question, then, becomes “What happens now?”

When the people find that
they can vote themselves money,
that will herald the end
of the republic.

~ Benjamin Franklin

I can tell you that I do not know for certain what will happen in the end, but I can predict some things:

  • The Federal deficit is going to continue to grow out of control. The entrenched bureaucracy will not let go of the purse-strings and the economy will crater. Some principle members of congress will oppose it, creating many opportunities for each party to blame the other for “obstructing” their plan to save the country. In truth, the Republicans have more to lose when things do go down the drain, because the Democrats and their allies in the media will be able to spin the news that the Democrat plan would have worked but the Republicans “broke it” somehow. The Republicans are just not smart enough to see that they need to get out of the way, to stand up and go on record saying, “I disagree with this Democrat plan, but I will not oppose it. You think you have the answer? Then prove it. Pass your legislation, put forward and enact your proposals, the economy belongs to you now.” Only by taking the “let it burn” approach can the Republicans prove to the low-information voters that the Democrats’ ideas are wrong.
  • President Peace Prize is going to get involved in more wars. And kill more people in undeclared war actions, like drone strikes, than that Cowboy George W. Bush ever did. Of course, we’ll see just as many anti-war protests in the next four years as we saw in the past four (that is to say, zero).
  • The rich will get richer, the poor will get poorer, and so will the middle class. If the middle class doesn’t disappear altogether. The coming economic disaster will hit the middle class hard, and they will only have one chance to save the old order – the 2016 elections – before the US becomes a nation of cronies lording it over the welfare class. Once all of the jobs are gone the unemployment rate will drop to historic lows, as no one will actually be looking for work. The Federal government will create more and more incentives for the unemployed to stay on the dole.
  • The best and brightest are going to take an economic sabbatical. The scorched-earth policy the Democrats call “paying their fair share” is a powerful incentive for those with money to reduce the government’s power to tax them. Until the government actually starts to go after wealth the “rich” will reduce their “income” and live on interest and savings until the storm passes or the bottom drops out. Since many in the middle class and most small businesses won’t be able to afford to do so, they will continue to struggle until all options are taken away. Then they will simply quit.

Those are my predictions. It is going to get worse before it gets better. A lot worse.

I do not want to sound as if I am hopeless about the future of America, far from it. It’s just that we have an important lesson to learn, and it looks like millions of Americans are going to have to learn it the hard way.

God bless us all.

Written by Andy Jackson

  5 Responses to “What Happens Now?”

  1. It’s amazing how folks pick and choose the parts of Atlas Shrugged which they embrace. As I read it – it states everyone should be respected for the labor and each and every person should be compensated for their trade in a fair fashion. When you look at corporate profits at an all time HIGH and the average wealth of an individual has gone DOWN, when the top 1% has gone UP 71%. There is no fair trade in that, I see Atlas Shrugged as support for Locke. You have to remember, Atlas Shrugged was written in a time when science didn’t understand the impact to the planet of industrialization and the middle class was effectively being respected, both of these facts are no longer the case. Regulation, taxation and fair trades have all changed. The rule of the day is SCREW labor, grab profits and forget about the future. Instant gratification and the unfair use of labor is no longer the best path forward.

    I also think taxes are nowhere near where they were in the time of Ayn Rand, so the comparison to moochers and takers is somewhat unfair – capitalism and competitiveness weeds out moochers in the end. If you think welfare is a great life, try living on it.

    If we were to buy into the allegory of people going on strike, we have to also buy into the whole 50 page plus rant which focuses on a traders world and trade is not fair today. We would also have to come to the conclusion that belief in God is for the weak and non-thinkers? So which is it? Is the book right or wrong, since you can buy the argument where it is convenient.

    Love your pseudonym though! Keep the discussion going and thanks for the post.

  2. Good afternoon,
    At no point did I mention Atlas Shrugged, though I suppose one could infer that book has influenced my thinking. The 1% vs the 99% percent argument has some very valid points, but the real difficulty with the growth in the level of inequality is structural. Sure, there is a “Top tax rate” for the “rich”, but almost no one pays it. Except for the small business person that falls into that category as an entrepreneur, or the middle class family in a large metro area (ask anyone in Atlanta, NYC or San Francisco if $250k/year income makes one rich – they will laugh in your face). Even Mitt and 0 only paid 15% or 20% income tax, though they are in the top bracket.

    And where are the shareholders of these corporations? Don’t they have a say in how much money top execs get paid? Remember, these “all time high corporate profits” generally get paid out to shareholders, many of which are union pension plans, investment funds owned by middle-class folks and so on. I saw an article the other day railing about Walmart’s “obscene profits”, which were only about 3.5% in 2011 – hardly obscene – no one seems to care where those profits actually go.

    I will expand on the definition of Looters and Moochers in my next article, I suspect that it’s not who you think it is.

  3. the whole atlas shrugged craziness should end. It's kinda like the bible – pick n choose what ya like http://t.co/lprtVzuV #tcot #tlot

  4. the whole atlas shrugged craziness should end. It's kinda like the bible – pick n choose what ya like http://t.co/lprtVzuV #tcot #tlot

  5. RT @governpoint: What Happens Now? #deficit #economy #war #welfare #who is John Galt? http://t.co/9LWWZEmH

Get into the discussion!