Saturday, February 28, 2009


Now that the new Administration's economic proposals are trickling out we can add them all up and see who is taking it on the chin, who is getting played for the sucker. The old advice for players at the poker table holds: If you do not know who the sucker at the table is, it is you.

Our economic system runs on voluntary compliance linked to cultural norms, not fear of getting caught and prosecuted. The cultural norms, in pre-PC days, used to be called the Protestant Work Ethic or the like. People who put themselves in position to find work and earn some income, did not over-spend their budget, bought and paid for a home they could afford, saved a bit for their children are the suckers. They will pay for others who did over-spend and saved nothing. They will pay in increased taxes, both in income and estate taxes (and their social security repayments will be means tested), and in inflation (their savings will be eaten up by inflation). Those who voluntarily complied with the rules and lived within their means are the suckers.

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