Prime Minister, you cannot carry on forever squeezing the productive bit of the economy in order to fund an unprecedented engorgement of the unproductive bit. You cannot spend your way out of recession or borrow your way out of debt. – Daniel Hannan (Devalued Prime Minister speech)
In Australia our eco-friendly government has massively increased the size of the public service, much of it in the area of environmental authoritarianism. They are forever banging on about ‘sustainability’ and the need for studies to be done on the issue. There has never been an inquiry though on whether the size of the government we have, is in itself sustainable.
The LP’s Wes Benedict, Executive Director of the Libertarian National Committee has raised the issue in reference to the S&P downgrade:
I’m sure you have heard the news about the Standard & Poor’s downgrade of the U.S. government’s credit rating.
I’m not a finance expert, so I don’t know exactly how important the downgrade itself is. I think it’s one more sign of what Libertarians have known for a long time: the Democrats and Republicans have created a giant welfare-warfare state that is beginning to collapse under its own weight. And I see no sign that they are going to change their behavior. Continue reading