Counterintuitive

When times get tough, the government likes to do the exact opposite of rational response.

When times are great, sensible families make sure to put money away against the possibility of hard times. The government spends every dime of their increased tax revenue, even to the point of big deficits they have to finance with debt.

When the economy goes in the tank, families tighten their belts. We cut out all unnecessary spending and focus our limited resources on the basics of housing and food. The government pushes ahead with opportunistic massive spending based on the discredited Keynesian philosophy of the 1030's.

As times get even tougher, families will find a way. We try to find extra money through second jobs, plant gardens to save on food costs, and sell possessions to stay afloat. The government uses the power only they have to raise taxes on those struggling families, exacerbating the downturn by undermining the population's ability to recover.

Recasting the government's behavior in terms of the average American illustrates sheer insanity.

Jack, husband of Jane and father of 3 children, loses his job. He goes home to assess his situation, and it is dire. He hasn't got much in the bank, and between the mortgage, car loans, and credit card balances, he's already teetering on the edge of bankruptcy.

So he and Jane decide to follow the government's model. Jack hires a contractor to remodel his home and build a new in-ground swimming pool in the backyard. He goes to the local Lexus dealer and purchases a brand new luxury car with 100% financing.

Jane walks through the neighborhood to all the neighbors she knows that still have income. She forces each neighbor to produce their financial statements, and takes about 50% from most of them. She explains to each, at the point of her gun, that since they have more money than she and Jack, it's only fair that they share the wealth.

The neighbors, realizing that half of everything they make is going to Jack and Jane for their remodeled home and swimming pool and Lexus, decide it's not worth all that hard work to only get half of their earnings. So many of them move away to escape their thieving neighbors. Others cut back on their hours or quit their jobs altogether. They plant gardens, no longer visit the doctor but try to manage their own health as best they can, and spend as little as possible on only the most basic needs. Because they realize that if their income falls below a certain level, Jack and Jane will at least leave them alone.

Pretty soon the whole neighborhood is bankrupt. Half the homes are empty, and the other half are in poor condition. At first, only Jack and Jane have the nice home in the neighborhood, but eventually, their source of income from working neighbors dries up. Finally, even Jack and Jane are bankrupt.