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Location: Pantego, Texas, United States

Tuesday, February 12, 2008

Here is more about the fascist tendencies of Democrats. The fact is that Democrats are not going to be able to raise taxes sufficiently to fund the programs that favor. Thus they will fall back on regulation to implement their programs. Here are some thoughts from Arnold Kling:

In November, the United States may take its strongest lurch to the left since 1933. The Republicans easily could lose 10 seats in the Senate. The relative turnout numbers in the Democratic and Republican primaries are consistent with a landslide victory for either Senator Clinton or Senator Obama.

Assume that this scenario plays out, and that the Democrats sweep into office behind either the nation's most aggressive nanny or its most liberal Senator (or both). What sort of consequences can we expect?

From a tax perspective, the Democrats will be constrained. All of their beloved "middle-class tax breaks" will be inoperative unless the Alternative Minimum Tax is curtailed. The tax increases that they plan for high-income taxpayers will serve mostly to make up for lost revenue from reforming the AMT. There will be essentially nothing left over for new spending.

This means that from a spending perspective, the Democrats also will be tightly constrained. They will start with a fiscal deficit. After claiming for the last eight years that Social Security does not need to be fixed, they are going to find that in order to meet its obligations Social Security is going to absorb funds from other programs (or require tax increases).

How can the Democrats implement policy changes without large spending increases? The answer is regulation. The business sector is going to be increasingly told what to sell and how to sell it. Particularly in health care and energy, firms are going to be accountable to bureaucrats, not to customers. Products and services will be designed in Washington, not by competition


Using regulation to control the economy is straight out of Mussolini's playbook. When FDR tried this, the Supreme Court stopped him. I doubt that today's court would; and surely it would not after two new Democrat appointment's to the Court.

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