Daily Archives: October 24, 2013

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GOP fiscal policy is the real disaster

CPBB deficit driversBush administration policies and the Lesser Depression account for virtually all of recent, current, and future deficits.

The media’s need to treat every story as an epic disaster to boost ratings and corporate profits is a two-fold failure. It hides the true scale and damage of real disasters by mixing them with minor problems the same way that Wall Street hid the danger of sub-prime mortgages by bundling them with good ones, and it overstates the impact of small problems even when those problems are predictable and can be fixed relatively easily.

The Affordable Care Act (Obamacare or ACA) is not a disaster. Anyone who pays attention to the private sector knows how common ineptitude is. Lehman Brothers and Bear Stern didn’t implode because of the government, they failed because the supposed best minds in finance calculated risk poorly, or were people who worked their way into positions of great power when they didn’t even care. Worldcom didn’t go under because of harsh telecommunication regulations, or Enron because of oppressive energy regulations. Instead, they both perpetrated great accounting frauds and market manipulation after significant deregulation allowed them to operate in the dark.

Asking a dozen or more private companies to create interconnected Internet-scale websites was unreasonable and begging for failure from the very beginning.

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