Monday, August 13, 2012

Reality vs. Hope

A critical question in this election -- especially now that the selection of Paul Ryan makes it more likely that real economic issues will be discussed -- is how much economic reality the American public will be able to swallow this year. A majority (or close to majority) of the public has a vested interest in rejecting economic realities in favor of wishful thinking (in 2008 they called it Hope).


Reality says “that which you tax you get less of, and that which you subsidize you get more of”. Hope says you can increase taxes on producers (e.g. younger workers and entrepreneurs) to support non-producers (e.g. retirees and welfare slugs) without affecting economic growth.

Reality says that Medicare “as we know it” is unsustainable. Hope says we can squeeze out another few years before the sh*t really hits the fan.

Reality says all decisions involve tradeoffs. Hope says that Wise Men can treat resources as unlimited.

Reality says you cannot borrow to a point where debt service consumes much of your future production. Hope says The Rich will cover it.


Reality says that wages are determined by what you can produce that is valuable to others. Hope says that wages should be determined by what seems "fair".

Reality says that in order to cut up pies, you must first produce them. Hope says that pies are a given, and that the real question is how big each person’s slice should be.

Reality says that everything government spends must first be taken from the private sector. Hope says that government can create economic activity by spending other people’s money.

Reality says that economic decisions are best made by people when they vote with their own dollars. Hope says that economic decisions are best made by people when they vote at the polls to use other people's dollars.

Reality says that the only way you can lose weight is to exercise more and eat less. Hope says that there is a pill you can take or a device you can buy on QVC that will cause you to lose weight.

Reality says that children have to grow up to be adults. Hope says that, like Peter Pan, you don’t have to grow up if you simply wish hard enough.

In short, Reality sucks. It involves more effort than much of our current population seems willing to exert. The promises of Hope are always just one more government program away.

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