Grover Norquist, the much-hated guru of lower taxes, has said we are not going to see a budget deal this year.
I have said the same thing.
This is good news for the Tea Party, Norquist says. The outrage at higher taxes that will hit the middle class next year will drive people into the arms of the Tea Party.
That’s good news for me. The Tea Party Economist is positioned for just such growth.
The public will be losers. Tax hikes make losers of most people. One way or another, taxes are going up. Outrage will go up. The economy will go down.
The federal government is too big. It is going to get bigger. It owes too much to old people. It owes too much to welfare clients. It owes too much to the defense industry. It cannot pay its bills without borrowing. So, it owes too much to lenders.
These debts cannot be paid off. So, it will do no good to raise taxes. The taxes will not get paid. The economy will tank if the government tries to collect the taxes scheduled for 2013. A falling economy will reduce federal revenues and increase federal welfare expenditures.
We need lower taxes. We need reduced federal spending. We will get neither.
The Tea Party will grow. So will my mailing list.
To make money in this world, bet against government wisdom.