Politicians Can’t Cut Spending

It would be political suicide for a politician to even suggest that we should cut back in any area of the budget. If you suggest cutting the military budget, the right wing will tell you you're un-American and there are terrorists under your bed. If you suggest cutting Social Security, AARP will mobilize their tsunami of voters against you. And if you suggest cutting Medicare and Medicaid, the entire population will rise up against you screaming, "But health care is teh single most important issue of our day."

The problem is that every issue is the single most important issue of our day. That is why the tough choices that need to be made to shore up our economy won't be made.

Whenever a problem arises, the majority always say the same thing. "The government should do something about it." They all seem to think that our government shouldn't be everybody's safety net. When major hedge funds overleverage themselves, thkey think the government should bail them out, and when homeowners overmortgage their homes, they think the government should save them from foreclosure. We don't seem to make the connection that whenever the government "does something about it," it does so at half the efficiency and twice the cost of the private sector. Then it hands the public the bill through either direct taxation, or through inflation taxation. That means, in the end, we all pay.

Michael Maloney
Guide to Investing in Gold & Silver: Protect Your Financial Future