Wednesday, September 7, 2011

Understanding the D.C. Money Beltway



It works like this:


*  First, the money comes in from a variety of sources, mostly via taxes collected by the Internal Revenue Service, but all either (i) extracted from the private economy under the threat of, or at the point of the government's guns, or (ii) from borrowings that the private economy becomes obligated to service and repay.


*  Next, some percentage -- anywhere from 10% to as much as 90% -- sticks with, and is enjoyed by our large living political grandees, their minions, and their supporters. Think Air Force One globe circling sojourns, New York date nights, Martha's Vineyard and Spain's Costa del Sol vacations, etc., . . . as well as money recklessly tossed into (and disappearing with) dubious schemes and ventures of well connected political contributors. 


*  Then, the remaining balances that haven't been frittered away eventually get disbursed to fund government programs. Most of those programs are skewed to buy or maintain allegiances of constituencies important to whichever political gang currently is in control of the gravy disbursing apparatus.


*  Some of the money from the two preceding steps slops over and finds its way back into the private economy from which it came in the first place. All the rest is a net loss to, and a burdensome drag on the private economy.

No comments: