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The prosperity created by the misallocation of capital to housing was only temporary and it hurt our long-run growth. The surplus two million homes, and the trillions of superfluous square feet of housing we built, represent capital that should have been invested in better ways. Our long-term productive capacity would be higher now, if not for the misguided policies supporting the housing boom. This is being unwound, painfully, but it will be unwound.
The internet bubble was merely another in a long string of investment fads that are driven by human nature: it probably started with cavemen trading woolly mammoth tusks, and there will be another fad that goes too far in the next decade, and the one after that, and the one after that. We always get past these things.
The debt thing, yes we have debt. But household net wealth is over $50 trillion, after deducting debt. We're paying down our personal debt and being a lot more careful with new debt. Some people are screwed, but some people are always screwed. As for government debt, the problem could be worked off slowly over time IF we get after the kind of pro-growth tax reform envisioned by Simpson Bowles AND stop the anti-productivity and wealth destruction campaign being fashioned by the Obama administration. If we seek to emulate Europe in terms of regulation and social welfare and taxes, we will end up with European-style economic sclerosis. The twin notions that wealth arises only from greed or luck, and profits are bad, are very bad indicators for a return to productive economic policies. So getting government debt to a manageable proportion of GDP hangs in the political balance: Obama's policies and the progressive movement can NOT get it done. If we kill the golden goose, the goose is cooked.
So Rush's declaration boils down to a loss of faith in the notion that the progressive tide can be turned back. I am less pessimistic, but a lot of work needs to be done. And progressives are not the only aspect of the problem with government. Crony capitalism and corruption run through the players and history of both major parties. Criticism of the progressive movement is not intended to be a ratification of failed Republican policies or corruption or past lack of integrity, or an endorsement of any challenger to Obama.
One of the most perceptive and intelligent posts I've seen on any forum! Good analysis.
I read the link and it's exactly what prompted my first response, which is that he's completley full of it since he leaves Reagan out of the whole debt fiasco.
He's a fake, phony, and a fraud who's gotten rich off of stupid people.
Agree in a sense. The incessant borrowing started in the 80's. Congress was still heavily leaning left which is also a factor.
Say what you want about how he's gotten rich. He didn't ask me for a handout. He didn't do it illegally.
If he is a fake and phony, he would not have lasted as long as he has as the #1 show. He called the whole Gitmo situation - that Obama wouldn't close it - over a year in advance.
Just about everything about America is fake; fake freedoms, fake morals, fake religions, fake reasons to go to war, fake civil liberties, fake unity, fake politicians, fake media, fake values, fake investigations, and populated by millions of fake people.
Americans do their best to stamp out anything that is genuine.
Just about everything about America is fake; fake freedoms, fake morals, fake religions, fake reasons to go to war, fake civil liberties, fake unity, fake politicians, fake media, fake values, fake investigations, and populated by millions of fake people. Americans do their best to stamp out anything that is genuine.
The vitriol you and Rush's worhippers have for obama is downright nutty and bordering on unhinged. One only need look at how 99% of you sat by while Bush started wars but didn't pay for them while cutting taxes...fiscal conservatives.
I don't hate obama. I think he's a man-child in way over his head, but I'm not usually throwing personal attacks at the guy.
Having said that, what wars did Bush start that you disagree with? Should we have not gone into Afghanistan?
I actually listened to this comment Rush made on live radio and I was kinda stunned. In fact for the first time Rush explained why and how he came to this idea. In fact missing from the article Rush talks about how older people like his Grandfather were warning him about debt. How the "cost of living" and proposerty has been build on falsehoods. Where people are living well but also living in debt and government spending and debt gives the illusion that everything is ok because the money was being printed. For the first time Rush sounded like and started to think like Ron Paul and that is why people we so shocked and his producer of the show didn't know why Rush was talking this way.
I believe its the same thing that got Beck of Fox News.
Anyway back to the story I believe Rush for a long time didn't fully understand the goverment between liberal spending and republican spending has destroyed the country and for a while just thought it would resolve itself. It's money we own to ourselves Rush said and then realized none of the money is real only the sweat and labor of the working man.
Ron Paul 2012
Keep it up Rush there is hope for you yet.
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