Friday, December 23, 2005

Starve the beast, part 2

In my forthcoming book, which will be published by the Cambridge University Press, I address the “starve the beast” view at what I consider a more fundamental level.

BTW, the two leading candidates for the book’s title at this point are: (1) “The Abuse of Fiscal Language and the U.S. Government’s March Towards Bankruptcy,” and (2) “The Use and Abuse of Fiscal Language: Taxes, Spending, and the U.S. Government’s March Towards Bankruptcy.” I prefer # 2 aesthetically, but am inclined to accept counsel that # 1 is better commercially.

In the book, I address the problems with using deficits instead of long-term fiscal measures. But this is only Exhibit # 2 in how fiscal language has encouraged making things worse.

Exhibit # 1 is the use of the terms “taxes” and “spending” as proxies for determining the size of government. Thus, if the government were to give me $1 billion which I immediately handed back, simplistic idiots would say: “There’s just been a billion dollars of taxes and spending!” I would say that really nothing has happened.

No idle hypothetical – Social Security, for example, has aspects of this, although there is a greater time lag and the cash you get back may not equal, in time-adjusted value, the cash you put back. But this means it’s the aspects of non-equivalence, not the gross cash flows each way, that determine how significant the whole thing is.

The size of government, I’d say, is a concept that, in the budgetary realm, involves trying to quantify the effects of government policy, relative to some baseline that has to be specified, on allocation and distribution – on what we have and who has it. (I limit this to the budgetary realm because issues such as civil liberties operate in different dimensions.)

Once you take this perspective, the utter inadequacy of discerning how much the government is doing from the number of dollars associated with discrete and often offsetting cash flows becomes pretty clear.

Against this background, what does “starve the beast” accomplish even if there are large spending cuts in future years? (Note: there will almost certainly be large tax increases as well.) Point 1: It definitely increases redistribution, by handing vast sums of extra money to older generations at the expense of younger generations. (Older generations were huge net winners even before the whole exercise started.) Point 2: It probably increases government-induced economic distortion, what with the heightened disparity between tax rates in different periods, the instability and risk of fiscal crisis throughout the adjustment process (which may become chronic rather than coming to an end), etc.

If any “starve the beast” advocate whatsoever has actually tried to think through how the adjustment process is likely to go, and in particular why my analysis would NOT be correct, I certainly have yet to hear it. They are seemingly determined not to look past their own noses.

101 comments:

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Why can't you call it The March to Bankruptcy with a big subtitle that incorporates the gist of fiscal language abuse but perhaps in plainer words?

Quite frankly, even though it may be a wonderful book, your proposed titles are boring.

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Frankness appreciated, Anonymous. Better to be told now than to find out later.

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And no, nothing about his "secret" is illegal - nor does it require that you know someone on the "inside" at Google, Yahoo, MSN, Overture and others.

Instead, the New Yorker boasts proudly "...this is something that I caught onto just before 2000 when there was so much search engine craze running around, and started doing small just to test things at first ... but which I later expanded on after getting the hang of it."

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Over the course of nearly eight years the New Englander confesses "I've actually gotten over $87 million in advertising that using my secret I never had to pay for ... and the largest share of which was more recently in Google pay-per-clicks as well as other forms of pad advertising at search engines ... all of which I got for free ..."

So powerful is his secret that he's able to monopolize any niche online, and can always secure the top premium spots just above the usual organic results featured at most search engines.

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One spokesperson from one of the most popular search engines said chuckling after being made privy to this amazing secret "Wow! Ha! This is really unique ... and in my expert opinion it would only serve to enhance and bring more business to us at [name of search engine withheld for legal & confidentiality reasons] and not cause us to lose business in the slightest. Amazing!"

The northerner revealed that in this nearly eight years' period of time since applying his secret he's done well over $300 million in sales revenue with a most diverse line of products, and most recently in the last two years netted nearly $166 million after really "buckling down and pressing my secret to its fullest potential."

Now to everyone else's fortune, the city slicker is releasing his secret for getting an unlimited amount of pay-per-click ads to the general public. But he's not promising any of us for how long.

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One famous public web guru pointed out that although this man may gain economically more so as a result of the publication of his secret "he's already so amazingly rich that whether he continues or discontinues its sale will neither make nor break the man, but not grabbing it for yourself while it's still available could prove disastrous for you as you may only have one chance, and a very limited one at that, to get this."

It is currently available at:

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...so you may want to head on over there now and get it.

It's in a very easily readable format and is quickly and readily understood and mastered by anyone with even a 4th grade reading level.

While you're there, why not scroll down and review for yourself the huge successes others are now having with this incredible breakthrough in targeted advertising now made freely available to the rest of us?

To your success,

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Dating-Mates said...

With the increase of affiliate marketing programs, many affiliate software are being developed these days. The affiliate software that tracks your affiliate business is known as affiliate tracking software. Some manufacturers give you free benefits on buying the software from them.

Tracking software keeps a track of leads, clicks, sales and all the other activities visitors undertake in your website.

The use of this software increases the flow of traffic to your sites. It also helps in increasing sales. You save a lot of time that you can use in other constructive activity for your site.

With the use of this software you will pay only for what your affiliates sell and thus save a lot of your money.

The software must provide you with direct linking capability. This enables you to establish a direct link with all of your affiliates. The software must be able to support multiple sites.

You will require this capability to support all the sites you are working with.

The software does not come freely. You will have to pay some amount to enjoy the benefit of these software. They can be obtained either by paying a monthly rental or an amount of money annually.

The affiliate tracking software tells you where your business is heading. The software provides a high level of system automation that enables you to focus on your creative marketing and other efforts.

The basic purpose of this software is to give you peace of mind. The emphasis should be on simplicity without any hassles. You must be able to sit back and enjoy the benefits of your affiliate business.

If you do not have the right affiliate tracking software then you will not be able to benefit from affiliate marketing benefits.

Work at Home The Most Reliable Work at Home Business On The Web!

Dating-Mates said...

With the increase of affiliate marketing programs, many affiliate software are being developed these days. The affiliate software that tracks your affiliate business is known as affiliate tracking software. Some manufacturers give you free benefits on buying the software from them.

Tracking software keeps a track of leads, clicks, sales and all the other activities visitors undertake in your website.

The use of this software increases the flow of traffic to your sites. It also helps in increasing sales. You save a lot of time that you can use in other constructive activity for your site.

With the use of this software you will pay only for what your affiliates sell and thus save a lot of your money.

The software must provide you with direct linking capability. This enables you to establish a direct link with all of your affiliates. The software must be able to support multiple sites.

You will require this capability to support all the sites you are working with.

The software does not come freely. You will have to pay some amount to enjoy the benefit of these software. They can be obtained either by paying a monthly rental or an amount of money annually.

The affiliate tracking software tells you where your business is heading. The software provides a high level of system automation that enables you to focus on your creative marketing and other efforts.

The basic purpose of this software is to give you peace of mind. The emphasis should be on simplicity without any hassles. You must be able to sit back and enjoy the benefits of your affiliate business.

If you do not have the right affiliate tracking software then you will not be able to benefit from affiliate marketing benefits.

Work at Home The Most Reliable Work at Home Business On The Web!