So the Bush-Obama administration has taken a fiscal stance diametrically opposed to that of the patron saint of free enterprise. While escalating war in Afghanistan and maintaining over 850 military bases around the world, the administration has run up the national debt that Smith decried. By shifting the tax burden off property and off rent-seeking monopolies – above all, off the financial sector – this policy has raised America’s cost of living and doing business, thereby undercutting its competitive power and running up larger and larger foreign debt.
Adam Smith critiques the Deficit Reduction Commission (December 6, 2010)
The one sure mark of a con, though, is the promise of free money.Michael Hudson
To the deficit commission, a depression is the solution to the problem, not a problem.Michael Hudson
...if you increase living standards you make labor more productive. This is why Asia today is becoming more productive than the United States.Michael Hudson
The most serious problems lie in the financial sphere, where the economy’s debt overhead has grown more rapidly than the ‘real’ economy’s ability to carry this debt. ... The essence of the global financial bubble is that savings are diverted to inflate the stock market, bond market and real estate prices rather than to build new factories and employ more labor.Michael Hudson
If you look at the speeches he gave just before he left the Fed, it's pretty much “After me - the Deluge. I'm getting out while my reputation's intact”.Michael Hudson