[jpl]

In 1946 World War II had just ended and most of advanced civilization was lying in ruins, leaving the United States as the unchallenged preeminent economic powerhouse of the world. Social Security had existed for less than than ten years, and Medicare and Medicaid didn't even exist yet. In other words, the welfare state with all of its obligations that now dominates life was still in its infancy.

So to compare the fiscal outlook now (and going forward) to the situation in 1946 is kind of ridiculous. But somehow, I have a funny feeling that you already know this.

[1010RD]

You can draw the opposite conclusion as well. If you curtail the welfare system now you introduce all kinds of human capital back into the marketplace. It could be a second Renaissance.

The issue is our approach to welfare/entitlement/debt which are all tied to small v. big government. If the tax and regulatory burden were undone at the federal, state and local levels American entrepreneurship would bloom.

We’ve eaten all the gains of the past two centuries. That principle is gone. Either we grow the pie or we shrink it and divvy it up. Shrinking it and divvying it up is the road to massacre, war and genocide.

They have a point and perhaps given the political reality and opportunity we shouldn’t let a crisis go to waste. Now’s the time to attack the Leviathan.