The Greatest Nation?

"The United States is the most creative, innovative, entrepreneurial and generous country on Earth."
http://www.cnn.com/2009/POLITICS/04/16/shapiro.entrepreneurs/index.html

A couple of points. First, people always say stuff like this. But is it really true? I'm not so sure. We're more creative than the Japanese? We're more generous than Nordic countries? I don't know.

Second, articles like this irritate me. I don't love the bailouts, or all elements of the stimulus package. But to pull the whole "bankrupting America for future generations" argument is silly (not only because it wasn't Obama who allowed the debt to spiral out of control. He's inherited a mess. See image below).

Debt is not the worst thing ever. Sure, it's high now, but it has been higher (over 100% of GDP in the 1940's - see image). And the best way to pay off debt is to stimulate the economy to raise future revenues. I just don't see what this guy is advocating for. "Letting markets handle it" is just not a concrete solution.

Allowing "bad companies to fail" is also not as simple as this guy seems to think. Our entire system is at risk of collapse; some of the companies at risk are the driving force of our economy, and letting them fail could easily have cascading effects. Output would fall, tax revenues would fall, and that big fat debt would still be big and fat.

Finally, I still do not understand why everyone has a phobia of government spending. Anyone who has taken basic economics knows that in the face of externalities, public goods, and collective security, the government is - practically speaking - the only one who can step up and provide. That is, it is sometimes efficient for the government to spend (so, for example, on infrastructure... who else is going to do it? No one has a private incentive to repair a highway or build a high-speed rail network).

So we might have to pay higher taxes in the future. Honestly, big deal. Look at the tax rates in other countries... compared to them, our rates seem on the low side - or at least average. SEE GRAPH HERE

It's a great privilege to live in the US - still one of the world's most vibrant nations. But with that privilege comes a responsibility to support our government for the good of all of our fellow citizens. And maybe that means that we have to pay slightly higher taxes. I think Joe Biden was right when he said paying taxes is patriotic. It was just stunning that he was criticized for saying it.

I paid a lot of taxes in the last week - and I felt great about it. I just can't imagine ever bemoaning my tax burden. And I really can't understand the uber-wealthy bemoaning theirs. With the level of poverty that exists, both in the US and worldwide, I think it is immensely selfish for the super-rich to complain about the "burden" they feel. Sure, giving up money isn't awesome. But in my opinion, the wealthy are damn lucky to have the money to give up.

Hopelessly incoherent rant over.