The “Sequester” slightly reduces the rate of government growth, and took affect March 1st. There are no real cuts, but you couldn't tell from all the hysteria from the political class (including the mainstream media). Here are a few observations on the whole situation:
- The political class is committed to maintaining and increasing their power, and will make themselves look like fools to avoid any roadblocks to this, no matter how minor or necessary they are. Exhibit A is the President himself, who said he would veto Congressional attempt to dodge thedeal that help prevent additional downgrade to the U.S. credit rating. When time came to make good on his promise, he led the charge to kick the can downthe road again.
- There is no substantial, organized opposition to lead the charge for sanity. Only a few individual politicians are committed to actually cutting spending. This is a symptom of the real disease: the people’s ideology. Most Americans don’t care, are ignorant, and show little capacity to think long term. This is the core problem we must address- completely reshaping the average mind via education. We’re not going to trick anyone into supporting liberty. There’s no shortcut. Ron Paul Republicans should not try the slippery slope of compromise to get power, they should do as Rothbard noted, uphold the ultimategoal of liberty and act consistent with it. That’s how Ron Paul made a difference and changed so many minds. We have to build on that with the same strategy.
- It’s pretty clear that Americans will behave recklessly, driving up debt and inflation until they reach market imposed ceilings. TheReal Crash is coming and we had better get ready for the fallout. We also need to be ready for educational opportunities it will bring, which means working on our own education in economics and liberty.