Are politicians stupid?
Posted by Matt Dioguardi on September 24th, 2007
If I am reading this article by Robert Alan Feldman correctly his is predicting the following.
Massive political competition in the near future among politicians to see who can spend the most. (In other words, buy the most votes.)
This will be followed by greater public debt.
This will increase the risk of that debt. (The risk of holding Japanese treasury bonds.)
This will mean it will be more difficult to finance that debt without raising interests rates.
This will result in less long term investment as it will be too expensive. (Borrowed money will have to be at a higher interest rate.)
This will translate in to less long term growth for Japan in the future.
Oh yeah, and on top of all that slap a consumption tax which has a direct effect on reducing consumer demand … Hm … this doesn’t sound too good.
Bah! What’s Robert Alan Feldman know. Politicians really wouldn’t behave that stupidly, would they?
September 25th, 2007 at 12:17 pm
One need only look at the wise stewardship of America’s long-term economic prospects by political leaders over the past several decades to see tha–oh crap.