May
5
Growth is not Free
Filed Under Politics
As a child, I always used to take note of coupons and mailings which had the word “FREE” on them. I would mistakenly believe that these items represent value, rather than an attempt to move stale merchandise or lure in customers who would eventually spend more. While kids fall for this trick, adults know there is no such thing as a “free lunch”.
As we mature, we realize nothing worthwhile comes easy. Just as an alcoholic has to struggle through the shame and humiliation of addiction and the superstar athlete has to struggle through off-season practice, individuals can only grow and strengthen through facing pain.
Nature also teaches us that nothing is free. The Law of Conservation of Energy and The Law of Conservation of Mass state that all energy and mass are conserved. They may be redistributed, however, they are neither created nor diminished.
On a national level, we cannot escape our economic problems pain-free either.
Here are a handful of financial problems we are facing:
- Drastically unfunded pensions
- Trillion dollar deficits
- Toxic assets bought with taxpayer assistance to avoid bank balance sheet meltdowns
- Total reliance on government retirement and health benefits as population ages
- Total lack of comprehension that government cannot create new wealth, it can only redistribute or reallocate previous wealth.
The answers from our leaders have been to buy more time, borrow more money and avoid reality as long as possible. The sleight of hand of verbal obfuscation (Congressional grandstanding, Fedspeak) and cheerful optimism will not fix these underlying issues. Debts need to be repaid or defaulted on, they cannot be rolled over forever at favorable interest rates.
The flood of new money and credit is not prosperity, it is a sugar high that is not sustainable. Like a marathon runner who vomits with exhaustion and dehydration, we cannot expect a packet of sugary government goo to provide us with meaningful sustenance.
When will this painful “growth” of financial sanity occur? When will this reality be faced? When will the veneer of prosperity via interventionism be ripped off?
Takeaway: We only grow when we challenge our worldviews, struggle, and exit our comfort zone. Comfort and complacency is the enemy.
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