Switzerland will vote shortly whether its government will provide its adult citizens $2,800 monthly for being Swiss. All of them, not just the needy. Evidently at least some Swiss weren’t paying attention when the Soviets’ economy collapsed and China dumped communism. But perhaps there’s enough Helvetian left in the Swiss that the proposal will fail. That it got to a national plebiscite however, is bad enough.
There’s now worse, though: The Business Insider is running the suggestion that Senator Paul Ryan (GOP) should lead a charge to implement the idea in the U.S. Apparently the BI wishes to destroy either Senator Ryan or the United States or perhaps, both. Or perhaps it is being humorous. But one might expect a business publication to supply some thought about where the money will be found when it advocates spending. As all know (except perhaps, the BI) the United States is mired in deficits and debt. Any new spending must first be taken from those about to receive the bounty, or borrowed for them to repay later, with interest. But it’s worse than that.
Obamacare is a massive wealth transfer from the elderly to the young; the new coverage and subsidies for the newly insured is funded by a huge transfer from Medicare funding as well as new taxes. Therefore, the reduction of spending upon the elderly, while it will reduce the Medicare deficit, will not resolve the overall deficits. And Social Security ia also paid to the elderly and is in deficit. So America’s elderly are blithely enjoying retirement on a lot of illusory income that cannot continue indefinitely. The effect of defunding their Medicare worsens their predicament. The retiring Baby Boomers are not going to understand what will hit them, Yet people are proposing more government payments in American business publications? Public school grads must understand even less economics than we think.
We do note that the Insider’s proposal includes stopping all other government subsidies when the free money payments begin. That will last until the first poor black family faces huge medical bills for a small child… It is becoming even more difficult to predict any economic recovery when Congress is refusing any serious discussion and allegedly business publications sponsor this level of discussion. We are doooooomed…