"I have no illusions about the turmoil of a real government shut down. It's ugly. For some period of time, it would be hell for millions of people. I don't want that. I'm sure you don't, either. No one wants mass economic hardship. I'm fully aware we're talking about people's lives here…
But if the government shrinks 45% starting August 3 and remains permanently smaller, the hardship would be temporary. We'd come out the other side of it a better, stronger, wealthier, and maybe even less arrogant nation.
Simply reducing the deficit wouldn't mean you'd pay less in taxes – so it's not that we'd all have more money in our pockets starting August 3. It's that there'd be less government, which means less government meddling in the economy. There'd be fewer parasites and more potential producers. We'd be freer to create new wealth and grow new businesses. A little more freedom would go a long way.
It would be good to have more productive minds looking for ways to create new wealth with fewer government impediments to doing so. It's much better than having those same productive minds rotting behind government desks, meddling in other people's lives, and destroying wealth instead of creating it.
But I do think the debt ceiling will be raised by August 2. Among other reasons for this belief, there's something you'd learn in the ensuing crisis if the ceiling was not raised, something nobody wants you to learn…
You'd find out government is the problem not the solution, and that we'd all be better off with a lot less of it.
That's why Treasury Secretary Geithner says it would be a "catastrophe" not to raise the debt ceiling. It's why Fed Chairman Ben Bernanke says it would be "calamitous." It's why Komrade Obama says it would be "financial Armageddon." They're all trying to scare you.
Everybody thinks people would starve without the big, strong government to feed them. It's not true. We'd be a more productive, dynamic, and wealthy society. You'd see this happen right before your eyes if a large portion of the government shut down permanently.
But nobody in government wants you to see that.
Our economy doesn't suffer from a lack of govern-
ment intervention. It suffers from too much government intervention. The solution to too
much government intervention in the economy isn't more government intervention. It's less government. That's what you'd get on August 3, without a higher debt ceiling.
Laying all my cards on the table, I freely admit that I relish the potential shutdown of huge swaths of our bloated, oppressive federal bureaucracy. And I relish the prospect of hundreds of thousands of government employees, people with perfectly productive minds, some of them quite brilliant, making the change from parasites to producers… though I realize it's unlikely to happen.
Imagine for a minute the unleashing of entrepreneurial energy in the wake of a shutdown of 45% of the federal government. The U.S. government is filled with intelligent, highly educated, highly trained people. Many are experienced leaders. Many are more than capable of positively heroic feats of entrepreneurship, feats we'll never witness if they don't leave their government jobs and get to work.
Frightened children like Obama, Bernanke, and Geithner see scary monsters everywhere. Adults with vision and experience see opportunities. I promise you those opportunities are real. They exist. If the government wakes up August 3 and can't pay 45% of its bills, it won't be long until many of those opportunities are seized and exploited, to the benefit of us all."
| What the Government Will Never Tell You About the Debt Crisis, by Dan Ferris, editor, The 12% Letter,Saturday, July 23, 2011 |
