From WSJ, July 25, 2012, America’s Two Economies
Makes some great points:
- There are now two economies that compete for America’s wealth, the public economy and the private economy
- The private economy needs the wealth as generated by profitable and productive activity for capital and investment as leverage to even greater productivity. The public economy needs the wealth for tax revenue in support of its spending goals
- Implicit to the public economy is that public spending is a public good, and on a higher moral plane than is private capital-accumulation and investment.
- The first $831 Billion stimulus bill was intended to stimulate public sector hiring and to fund policitally desirable investments.
- “Pres Obama is telling the private economy it must subordinate itself to the public economy’s moral efficacy.”
- “The role of the private economy in the US will be to support the long-term wants and needs in the public economy.”
- Henninger believes this to be a “mandate election” between these two clear choices and ways of thinking.
Makes me think that the parasite (Govt taxation-borrowing-spending) has begun to think of itself as the host!