Tuesday, November 20, 2012

Geithner Calls for No Debt Limit

By Douglas V. Gibbs

The liberal left supports the failed economic theory of Keynesian Economics, which calls for consumption and government spending to pull financial systems out of recessionary times.  Consumption, however, is a ridiculous goal when there is no manufacturing.  Without growth in manufacturing, the goods available for consumption are just not there.  The production of goods must come before consumption, for not only does that provide the goods first, but the increase of supply also reduces prices, which in turn encourages consumerism.

The way to encourage growth in the production of goods and services is for government to remove itself from the free market.  Governmental retreat from the private sector includes a reduction in taxes, and an easing of regulations against businesses.  A reduction of governmental spending is also necessary, to make this work.  President's Harding and Calvin Coolidge followed this recipe, and what followed was one of the most prosperous decades in American History, the Roaring Twenties.

The Obama Administration is doing the exact opposite, and now, Treasury Secretary Geithner, historically in line with statists like Alexander Hamilton, is calling for Congress to eliminate any limits on government spending, effectively lifting the debt limit to infinity.

On Bloomberg TV, “Political Capital” host Al Hunt asked Geithner if he believes “we ought to just eliminate the debt ceiling.”

“Oh, absolutely,” Geithner said.

“You do? Will you propose that?” Hunt asked.

“Well, this is something only Congress can solve,” Geithner said. “Congress put it on itself. We've had 100 years of experience with it, and I think only once--last summer--did people decide to use it to threaten default on the American credit for the first time in history as a tool for political advantage. And that’s not a tenable strategy.”

In other words, eliminate the debt limit so that the opposition has no tool to stop the liberal left from spending as it pleases.

Geithner said, “The sooner the better.”

-- Political Pistachio Conservative News and Commentary

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