Free Markets, Free People

Daniel Henniger


Hey Children, What’s That Sound …

Nope, not another post about the kiddie speech. Instead the title is from an old protest song from the ’60s (by Buffalo Springfield I believe). The sound is the sound of real, honest to goodness change being driven by government excess – not the veneer of change pushed by a certain candidate in the last election.

Daniel Henninger writes about it today in the WSJ. He sees it happening everywhere (he uses Japan as an example) and he believes it all pretty much boils down to this:

No matter the ideological cast of these governments, they all hold in common one policy: the inexorable upward march of national indebtedness. It has arrived at the edge of the cliff.

It is the point the liberal left in this country still doesn’t understand. The looters have finally been noticed by looted and the looted aren’t at all happy.

That’s it. That’s the problem. And that’s why there’s so much unrest.

As measured by the OECD, the growth in gross debt as a percentage of GDP since the dawn of the new century is stunning. The data isn’t exactly comparable across individual countries, but the trend line is unmistakable.

In the U.S., debt as a percentage of GDP rose to 87% in 2009 from 55% in 2000. In the U.K., to 75% from 45%; Germany, to 78% from 60%; France, 86% from 66%. There are exceptions to this trend, such as Canada, New Zealand and notably Australia, whose debt has fallen to 16% of GDP from 25%. But for all the countries in the OECD’s basket the claim of indebtedness on GDP grew to 92% from 69% the past nine years.

In short, the lumpen electorate works, and the lumpen bureaucratariat spends. They get away with it because they have perfected the illusion that no human hand causes these commitments. The payroll tax just happens. Entitlements are “off-budget,” presumably in the hands of God. This is government without the responsibility of governance.

Unable to identify who or what has put them in hock to the horizon, national electorates are attempting accountability by voting whole parties out of power.

That, among other reasons, is why the Republicans are out of power. And, if the Democrats continue down the path they’ve charted, is why the Republicans may find themselves back it power. And it wouldn’t at all surprise me, given the gawd-awful track record of the Republicans, that they too will misinterpret their reinstatement and be gone again in 2 years.

It is about the size, cost and intrusiveness of government, stupid!

The “lumpen electorate” has finally had enough. They want to keep what they earn. They want less government. But that’s an anathema to politicians who have built whole lives and careers on providing more government. It’s like an addiction – they can’t stop what they’re doing or how they’re doing it.

And, unfortunately, even though the masses seem unhappy with the size and cost of government, they too are addicted to a certain level of government. They too have an addiction to break.

The question, of course, as far as libertarians are concerned, is how these two addictions can be addressed and overcome so that government’s size and cost can be scaled back to a proper and legitimate size? And where are the leaders to do this?

Until they emerge – and there is nothing to say they will – this cycle of unrest which sees the swapping out of political parties will continue. But you have to believe that at some point, the disenchantment with the current political regime (and both parties make up that regime) will come to a flash point. What that flash point will entail – the range of possibilities is vast – is anyone’s guess.

When it is reached, politics and government as we know it now, will change forever. I cautiously believe we’re moving in that direction. When and where are anyone’s to guess, but I’m beginning to believe we’ve moved beyond “if” and have a “when” in our future. Or at least I hope so – because it seems obvious that we need some very drastic changes in direction.

What we’ve got to work toward is a change that emphasizes freedom and enhances liberty. And that isn’t by any means the only possibility such change would bring.

The old Chinese curse seems to be in full bloom right now – “May you live in interesting times”. I can’t think of times, during my life, that have been any more interesting.

~McQ