The Quipper

Friday, November 05, 2004

"You broke it, you bought it."

Slate's Dan Gross writes little preview of the mess that Dems would have had to clean up, and why the potential silver lining will be watching the market pass judgement on the faith-based economics of the Bush team:
In decades past, increasing Republican dominance of the House and Senate would have meant more fiscal discipline. But Republicans increasingly dominate the states that are net drains on Federal taxes—the Southern and Great Plains states—while fading in the coastal states that produce a disproportionate share of federal revenue. (It's Republicans, not Democrats, who are sucking on the federal teat.) What Amity Shlaes quaintly identified in today's Financial Times as the "southern culture of tax cutting" has been married to the southern culture of failing to generate wealth and the southern culture of depending on federal largesse. The offspring is an unsightly deficit monster.

Establishmentarians have long wondered when the grown-ups will asserts themselves in the Republican party. The stark truth today is that there are no grown-ups.

Kevin Drum over at Washington Monthly refers to Brad Delong's analysis of the long-run effects of this faith-based economics insanity. Time to read up on the Argentinian economy?

So, will we get unsustainable spending increases coupled with irresponsible tax reductions?
Probably.

Will we be neck-deep in an expensive occupation of a hostile foreign land with no planned exit?
Already there.

Should we start hedging with investments in the Euro?
Maybe.

Long live supply-side jaysus!