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81 comments on Stuart's 2006 predictions

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Whitehall on January 5, 2006 - 10:44pm Permalink | Subthread | Parent | Comments top
If the Kos energy proposal we've discussed on this board is representative of the Democratic Party's approach, and I think it is, then we have two broad philosophic alternatives:

Democrats - tax and spend and regulate

Republicans - let the market work

Of course, in power neither would be able to implement a purist approach but I'd think they will follow these general approaches.

In this case, I'd argue that the Republican approach would be more effective in allowing the economy to adapt with the least pain.  We have the experience of the Carter years to show that the Democratic approach certainly has its problems.

I will agree in advance that even the Republican approach will still require a reduction in standards of living and a lower economic growth rate. However, the central planning approach of the Democrats would surely lead to maladaptations and snafus at the system level.  I think American voters understand that.

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Leanan on January 6, 2006 - 7:40am Permalink | Subthread | Parent | Comments top
IMO, you're arguing about who will do a better job of rearranging the deck chairs on the Titanic.  

As for what the voters will think...Stoneleigh's right: they will support whoever is NOT in power.  Whenever times are bad, they "throw the rascals out."  

Based on what has happened in other collapsing societies, I expect taxing, spending, and regulating to increase no matter who is in power.  The government has grown more under Bush and a GOP congress than it has since FDR; the GOP has not had real Libertarian leanings since Newt Gingrich was ousted.  

People and corporations say they want less government, but it's not true.  They want government programs, especially when times are bad.  They want their jobs and markets protected.  They want infrastructure built, to generate jobs and help business.  

The Great Depression resulted in the New Deal, and I'd bet the farm something similar will happen again.  

Of course, it won't work this time, but I seriously doubt any party that tries to "let the market work" will gain any traction when "the market" is letting children starve and little old ladies freeze to death.  

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81 comments on Stuart's 2006 predictions

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