Bringing Down the Empire
Tea Party Invitation, RSVP
by Gary North
The phrase “Tea Party” is synonymous these days with the politics of spending cuts. The big one is the compulsory health insurance law. Tea Party people want it repealed. Yet in the grand scheme of things fiscal, that law is a drop in the tea cup.
In my previous report, “A $600+ Billion Spending Cut,” I suggested a sure-fire way to cut a big chunk of spending out of government budgets: local, state, and federal. Stop funding all education. The typical voter reads this and thinks: “But that would end all progress.” There is no constituency for such an across-the-board spending cut. The Tea Party has not recommended it.
There are other cuts possible – much larger cuts: end both Social Security and Medicare. Same response, only louder.
This is why Keynesianism is always popular with a majority of voters. Voters have accepted the Keynesian premise: government spending is a productive thing. So, in a financial crisis, there is never any effective resistance to new emergency spending programs. On the other hand, there is well-organized resistance by favored special-interest groups against cutting existing programs at all times, This process is the basis of the government’s spending ratchet. Spending by the national government keeps increasing. So does the national debt.
Yet this acceptance of ever-more Federal spending may be changing, as economists say, “on the margin” – or as politicians say, “on the fringe.” The Tea Party movement is the indication of a change of opinion.
THE DREAM OF A MAGICAL FIX
The Tea Party gets a lot of media attention these days. Two Republican Party primaries on June 8 got coverage because of victories by Tea Party candidates: South Carolina and Nevada.