WASHINGTON — Connoisseurs of democratic decadence can savor a variety of contemporary dystopias. Because familiarity breeds banality, Greece has become a boring horror. Japan, however, in its second generation of stagnation is fascinating. Once, Japan bestrode the world, jauntily buying Rockefeller Center and Pebble Beach. Now Japanese buy more adult diapers than those for infants.
America has its lowest birth rate since at least 1920 — family formation and workforce participation (which last year hit a 30-year low) have declined in tandem. But it has an energy surplus, the government-produced overhang of housing inventory is shrinking and the average age of Americans' cars is an astonishing 10.8 years. Such promising economic indicators, however, mask America's democratic decadence, as explained by the Hudson Institute's Christopher DeMuth (The Weekly Standard, Dec. 24):
Deficit spending once was largely for investments — building infrastructure, winning wars — which benefited future generations, so government borrowing appropriately shared the burden with those generations. Now, however, continuous borrowing burdens future generations in order to finance current consumption. Today's policy, says DeMuth, erases “the distinction between investing for the future and borrowing from the future.”
December's maneuverings made clear that most Americans will be spared the educational experience of fiscal cliff-related tax increases and spending cuts, which would have been a small but instructive taste of the real costs of the entitlement state. Still, December's maneuverings taught three lessons.
First, there will be no significant spending restraint. Democrats — you know: the people respectful of evidence and science — even rejected a more accurate measurement of the cost of living that would slightly slow increases in myriad government benefits. Accuracy will be sacrificed to liberalism's agenda of government growth.
Second, Barack Obama has (as Winston Churchill said of an adversary) “the gift of compressing the largest amount of words into the smallest amount of thought.” His incessant talking swaddles one wee idea — raising taxes on “millionaires and billionaires,” including couples earning less than half a million. He has nothing pertinent to say about the steadily worsening fiscal imbalance that will make sluggish growth — under 3 percent — normal.
Third, one December winner was George W. Bush because a large majority of Democrats favored making a large majority of his tax cuts permanent. December's rancor disguised bipartisan agreement: Both parties flinch from cliff-related tax increases and spending decreases. But neither the increases nor decreases would have tamed the current $1 trillion-plus budget deficit nor made a discernible dent in the 87-times-larger unfunded liabilities of the entitlement state.
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