Comments on: When Did Saying This Become the Equivalent of Beating Your Child in Public? http://theunbrokenwindow.com/2009/10/26/when-did-saying-this-become-the-equivalent-of-beating-your-child-in-public/ The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design. - F.A. Hayek Thu, 24 May 2012 03:09:54 +0000 hourly 1 http://wordpress.org/?v=3.0.3 By: Harry http://theunbrokenwindow.com/2009/10/26/when-did-saying-this-become-the-equivalent-of-beating-your-child-in-public/comment-page-1/#comment-10340 Harry Tue, 27 Oct 2009 04:25:00 +0000 http://theunbrokenwindow.com/?p=1580#comment-10340 The WSJ, under Robert Bartley's tutelage, published graphs of federal government spending, which showed that when you went over 18%-19%, growth slowed, tax revenues dropped, and our political economy went into a maelstrom called stagflation. Although I know that the future never is exactly the same as the past, much of today reminds me of 1978-1981. Jimmy Carter was wearing a sweater, telling us of our malaise. We created the Department of Energy, and if you were in Maryland you had gas lines. Interest rates were high, and rising, and one could make some good money if you had big travel expenses, put your cash into the bank, and paid off your American Express card at the end of the month, maybe $500 on the float. Leonid Brezhnev was in his acendancy, and Jimmy Carter was admonishing us for an inordinate fear of communism. Federal spending rose to 24% of GDP by 1981, in part because our country was declining. Ten percent would be wonderful, but I'd settle for 17%, assuming that Pennsylvania took just 2.8%. I'm waiting for a 23% VAT, though, which will consume my after-tax dollars quickly, so I can live like a Swede. What a big treat. The WSJ, under Robert Bartley’s tutelage, published graphs of federal government spending, which showed that when you went over 18%-19%, growth slowed, tax revenues dropped, and our political economy went into a maelstrom called stagflation.

Although I know that the future never is exactly the same as the past, much of today reminds me of 1978-1981. Jimmy Carter was wearing a sweater, telling us of our malaise. We created the Department of Energy, and if you were in Maryland you had gas lines. Interest rates were high, and rising, and one could make some good money if you had big travel expenses, put your cash into the bank, and paid off your American Express card at the end of the month, maybe $500 on the float. Leonid Brezhnev was in his acendancy, and Jimmy Carter was admonishing us for an inordinate fear of communism. Federal spending rose to 24% of GDP by 1981, in part because our country was declining.

Ten percent would be wonderful, but I’d settle for 17%, assuming that Pennsylvania took just 2.8%. I’m waiting for a 23% VAT, though, which will consume my after-tax dollars quickly, so I can live like a Swede. What a big treat.

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