PERHAPS THE FACT THAT WE HAVE SEEN MILLIONS VOTING THEMSELVES INTO COMPLETE DEPENDENCE ON A TYRANT HAS MADE OUR GENERATION UNDERSTAND THAT TO CHOOSE ONE'S GOVERNMENT IS NOT NECESSARILY TO SECURE FREEDOM. - FRIEDRICH AUGUST VON HAYEK
In a CNBC debate last week, former Labor Secretary Robert Reich presented a set of contradictory beliefs that unfortunately reflect the conventional wisdom of modern economists. In a discussion with Wall Street Journal columnist Stephen Moore, Reich correctly and comprehensively listed the reasons why American consumers could spend so lavishly before the crash of 2008 and why they can no longer keep up the pace. But instead of making the logical conclusion that former levels of spending were unsustainable and that spending should now reflect current conditions, he advocated that government take on additional debt so that tapped out consumers can spend like they used to.