ShareThis Page

The economy: The only solution

| Sunday, June 10, 2012, 12:30 a.m.

The Congressional Budget Office is predicting that the debt of the United States will be twice the size of our economy by 2037. (It's now 73 percent of the GDP). And it more than suggests that tax hikes should be a part of the "solution."

Just call us Europe.

Thickening the accent, Federal Reserve Chairman Ben Bernanke is cautioning that sudden austerity -- necessarily large spending cuts coupled with tax hikes -- would hurt the recovery.

As The Wall Street Journal noted, "Just what Congress needed: a lecture not to cut spending."

And just what this country doesn't need is this continued warped fascination with a failed economic philosophy -- Keynesianism -- that not only has retarded recovery from The Great Recession but very likely has plopped us into the recession's second trough.

There is no more compelling argument for spending cuts (real cuts, not simply reductions in the rate of spending increases) and real tax cuts (rate reductions that have the private capital-fueled stimulative effect that government spending in no way can mimic).

The historical record of such actions' success is indisputable. And that success has come in administrations both Republican and Democrat over the last century.

Those who dispute that success are engaging in rhetoric -- ignorant and/or agendizing -- that not only is antithetical to the foundations of this republic but a mortal threat to it. America, on a cliff, can abide such recklessness no longer.

Sunday pops

Pennsylvania House Republicans met behind closed doors last week to consider legislation to sell the commonwealth's 600-plus state liquor stores. The practice is defended as being perfectly legal. So is giving another driver the South Side Salute on the Parkway East. But that doesn't make it acceptable. One would think that a legislature so beset by corruption would do everything possible -- everything -- to promote transparency. That's apparently not the case. ... So unserious is new socialist French President Francois Hollande about getting L'hexagone back into fiscal shape that his administration has lowered the retirement age from 62 to 60. It's calling the move another step toward "social justice." Let's call it what it is -- another in a long line of French steps toward insolvency. ... That cost-inflating "project labor agreement" for union work on a new light-rail project to Dulles International Airport in Washington, D.C., is finis. And with good reason. PLAs are nothing more than extortion by labor unions that discriminate against nonunion contractors. Here's hoping a new trend is upon us -- rejecting Big Labor's thuggery.

Dear Ken Melani:

Actions have consequences.


Yours, Old Man River.

TribLIVE commenting policy

You are solely responsible for your comments and by using you agree to our Terms of Service.

We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.

While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.

We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers

We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.

We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.

We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.

We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.