Welfare dependency sucks us all in eventually

The USA is sliding slowly (the only speed for such a behomoth) into an abyss of debt. One aspect of the debate there that is not so prominent here is the degree to which government spending is increasingly hidden within "tax breaks" rather than overt spending. As in Australia, this creative accounting means that such revenue forgone can be more effectively hidden from the people compared to money spent. One small advantage of "tax breaks" compared to handing over real cash is that the beneficiary actually has to be capable of earning something before a tax break can be an advantage (although this can probably be fixed with a little more creative accounting these days).

The immense complexity of these interwoven economic distortions creates innumerable little cracks and folds where completey unproductive vermin breed and feed. 71% of all Australians wouldn't bother to use a taxation accountant to complete their tax returns (an activity that is completely unproductive for the society) unless they felt that they might miss out on one of the cracks or folds. Thus, like welfare dependency, more and more people are enticed into unproductive activity in reponse to rewards from the complex artificial system that we have created. In just the same way, arts groups ape every politically correct attiude to get a government dollar; business groups mouth green words with minimal follow though to get "sustainable" accreditation; manufacturers dismiss staff and outsource as a bargaining chip to maximize their access to the government trough.

It is only while we have an enormous local productivity surplus that we can afford this asinine behaviour. It is a slow process of turning public opinion to the fact that any politician mortgaging our children's future with deeper deficits is turning us into "PIGS".

Sparked by article by New York Times Columnist David Brooks:
http://www.nytimes.com/2012/02/24/opinion/brooks-america-is-europe.html