Guest Post: The Fiscal Cliff And The Grand Bargain

Wednesday, November 28, 2012
By Paul Martin

by Charles Hugh-Smith

There are 1.1 government dependents for every full-time worker in the U.S. In our analysis, there has been a Grand Bargain reached by the 3.5 classes in the U.S. The Grand Bargain was this: we at the top will pay significant taxes as long as we get to control the levers of financial and political power. We in the top 19% will pay much of the taxes as long as we and our children can continue to live well and accumulate wealth. We in the “middle class” will continue to work hard as long as we have hope of bettering our lifestyle and the lives of our children. We in the bottom 50% and retirees agree not to threaten the top .5%’s power and the wealth of the top 19% as long as we can get by on our government transfers. This Grand Bargain is now fraying as the promises made to everyone cannot possibly be met. That which is unsustainable will be replaced by another more sustainable arrangement. It’s a partnership of “Tyranny of the Majority” and “entrenched incumbents Elites.”

The Rest…HERE

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