“Why do people not resist the endless increase of government spending? Can they not see it will lead to economic collapse? Are the people stupid? Insane? Just concentrating on internet porn? What?”
These are the sort of questions that free market people ask. But all the questions make an assumption – in fact several assumptions.
One unspoken assumption is that most people believe in “Keynesianism” – that they do not believe that increasing government spending is “good for the economy”.
Actually I think this assumption (that most ordinary people reject Keynesianism when they hear it) is actually valid. When people come home from a hard day at work and they see on the news (if they even watch the news) so obviously deluded person (such as the “Nobel” prize winners Krugman and Stiglitz) demanding more government spending on X, Y, Z, they know it is nonsense – at a gut level they reject this insanity known as “Keynesianism”. With its “monetary stimulus” and “fiscal stimulus” and other vodoo.
However, there are other assumptions which I do not think are valid.
For example, it assumes that most people know (know CLEARLY) that government spending is still increasing. And, in an American context, know that BARACK OBAMA has been the main driver in the increase in government spending in recent years.
The media reporting of this whole area is a TISSUE OF LIES.
The Economist magazine (“oh Paul not your favourate whipping post again” – it presents itself as a free market magazine, so of course I single it out) every week talks about the “cut” in government spending in Britain and United States and other countries.
Regarding the United States (week after week) it will write about the “hundred of billions” of reductions in government spending – whilst (in the real world) government spending continues to go UP. “Paul hardly anyone reads the Economist magazine”.
No – only people who are not satisfied with the ordinary media might do so. But what does the ordinary media teach?
The ordinary media teach that Mr Cameron and co have made savage cuts to government spending in Britain. That wise and noble Obama is struggleing for a “balanced approach” of “cuts” in government spending in the United States together with the “tax dodgeing” rich “paying their fair share”.
All of this is a tissue of lies (it is all false). But if people turn away from the general media to the specialist economic (and “free market”) media – they hear and see THE SAME THING.
In some corner of their minds most people have some doubts about what they are being told, but they are told it (including via the ENTERTAINMENT media – if they do not watch news or current affairs), government spending is being “cut” – Cameron and Osbourne are super “tough”, Obama is wise and noble struggleing against evil Republicans in Congress……
And on and on.
So the population (or most of them) are left confused – a WALL OF LIES keeps them from the truth.