Avoiding a “Savior-Based” Economy
Guinevere Nell /
South Carolina Gov. Mark Sanford made some very important, insightful points on Sunday. He said them very concisely, as politicians know how to do. They are just what we’ve been saying here for so many weeks and months, and are important points that every American must remember:
- “A problem that was created by building up of too much debt will not be solved with yet more debt.”
- “We’re moving precipitously close to what I would call a savior-based economy…what you see in Russia or Venezuela or Zimbabwe or places like that where it matters not how good your product is to the consumer but what your political connection is to those in power.”
- “That is quite different than a market-based economy where some rise and some fall but there’s a consequence to making a stupid decision.”
- “A lot of people who’ve made some very stupid decisions are being bailed out by the population at large.”
- “We’re going to go through a process of deleveraging…And it will be painful. The question is: Do we apply a bunch of different band aids that lengthen and prolong this pain or do we take the band aid off? I believe very strongly: let’s get this thing over with, let’s not drag it on.”
Wonderful. We agree entirely. However, he also inadvertently made another thing very clear. (more…)