The View From 1776
Sunday, August 07, 2011
Who’s To blame?
Some fatuous observers tell us that there’s no real problem. Standard and Poor’s caused our financial meltdown, they say, by giving an AAA rating to securitized junk mortgage debt. So, by some odd contortion of logic, its downgrading U.S. Treasury debt is to be ignored.
Janet Daley’s commentary in the London Telegraph is directly on target. Our problem, and Western Europe’s, is not failure to tax “the rich,” but the entirety of the social-democracy, liberal-progressive world view and the political structure created thereby.
We have arrived at the endgame of what was an untenable doctrine: to pay for the kind of entitlements that populations have been led to expect by their politicians, the wealth-creating sector has to be taxed to a degree that makes it almost impossible for it to create the wealth that is needed to pay for the entitlements that populations have been led to expect, etc, etc.
The only way that state benefit programmes could be extended in the ways that are forecast for Europe