Sunday, December 30, 2012

Reality-Based Conservatism

It’s time that we take faith-based positions out of the conservative policy playbook. I’m not talking about religious faith – even though I’ve made that argument elsewhere – but policy faith where we believe certain policies lead to certain results in the face of evidence to the contrary. I've always believed that deficits and debt matter. I've always believed that printing our way out was a recipe for inflation. But I'm a heathen, so my world doesn't have room for faith-based views. I need to confront the world as I find it.

Recently, I wrote on the subject of paying for government handouts and how there have been no negative consequences from more and more spending. Conservatives have been saying for – literally – decades that there are consequences to the kind of debt we are carrying. They said it in the 1990s when our national debt crossed $5 trillion. Even the left complained about debt in the 1980s when it crossed $2 trillion.

When we've been hearing for decades that there are real consequences to high national debt at $2 trillion and $5 trillion, at what point do we stop believing that those consequences are real when our debt has now topped $16 trillion? What's real is that there have been no consequences to higher debt. There have been no consequences to increasing government handouts. There have been no consequences to printing more money to pay for government spending.

Conservatives have been predicting a reckoning for decades. Obama is the ultimate test of these predictions, reaching levels of spending never thought possible. When will these conservative predictions come true? Conservatives can’t point to any actual consequences; they can only point to possible future consequences. I've been hearing that there would be consequences for $14 trillion dollars and 25 years. How long should I keep the faith? It reminds me of end times predictions from Christians or Mayans. When the date of a prediction passes, another prediction comes along to replace the last one.

In response to these comments, I was told that we will still feel the full consequences of our actions, but it just hasn’t happened yet. It’s very possible that all of Obama’s accumulated debt and the continued money printing will eventually lead to economic catastrophe. If that happens, have no doubt that conservatives will be credited with predicting the results. Hell, we’ve been predicting it for decades so, if it actually happens, no one can say that we’ve been silent.

So let’s go ahead and check that one off the list: predict economic doom as a result of Democrat spending policies. Check. Now let’s move on. If we’re being honest, the escalating spending and the enormous size of the federal government have had no real world consequences. Taxes haven’t gone up to pay for the spending. Inflation hasn’t gotten out of control as a result of printing more money.

None of the conservatives’ predictions have come true. By repeating them in the face of reality, we are losing any remaining credibility we have left. It’s time for the right to look at the world as it is, not as their faith tells them it should be. It’s time that we acknowledge that Democrats are not bearing the consequences of their economic policies – they are winning elections. The sooner Republicans can abandon their faith-based thinking and embrace reality, the sooner they will begin winning elections.

7 comments:

  1. I see the logic but I doubt the wisdom. Basically I think you are letting electoral considerations confuse things. Things don't look great for the future of the Republican Party or conservatism (demographic changes and all that).

    But just putting all that aside and looking at the debt question objectively, you've got to say that it is already causing real problems. It's well known that sovereign debt in excess of 80% of GDP lowers growth. Also people have lost faith in America and the dollar. Everyone knows that the long term plan for dealing with the debt is to inflate it away.

    Bond yields are still low, sure, but would you invest in ten-year Treasuries?

    The US is in decline. And the debt is both a symptom and a cause (a vicious circle) of that decline.

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  2. So I guess maybe the Republicans should just say Eff it. Create more social programs, increase spending to the hilt and approve everything fiscally that is voted on. After all there is no consequences correct? I'm all for it. We need to make more voters dependent on us. That is the name of the game.

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  3. So I guess maybe the Republicans should just say Eff it. Create more social programs, increase spending to the hilt and approve everything fiscally that is voted on. After all there is no consequences correct? I'm all for it. We need to make more voters dependent on us. That is the name of the game.

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  4. Hi Mark.

    "I see the logic but I doubt the wisdom. Basically I think you are letting electoral considerations confuse things."

    Please don't take the last paragraph of my post and assume that it is my only point. The fact that Republicans are losing elections is actually the minor point I'm trying to make.

    "But just putting all that aside and looking at the debt question objectively, you've got to say that it is already causing real problems. It's well known that sovereign debt in excess of 80% of GDP lowers growth. Also people have lost faith in America and the dollar. Everyone knows that the long term plan for dealing with the debt is to inflate it away."

    I'm having trouble seeing how debt is already causing real problems. In fact, I see that there have been no consequences whatsoever.

    What you say is well known is only well known among conservatives. The left does not believe debt at 80% of GDP is a real problem. Low information voters probably don't even know what that means, so they certainly don't know it.

    The true point of this post is to say to you, Mark, that conservatives believe these things, but they are a matter of faith. We have our economists that can explain the theory, but nothing bad has actually happened in the real world.

    Back to the point you started with: if conservatives continue to spout theory that cannot be demonstrated in the real world, we will continue to lose elections.

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  5. "So I guess maybe the Republicans should just say Eff it. Create more social programs, increase spending to the hilt and approve everything fiscally that is voted on. After all there is no consequences correct?"

    Chaz, I'm sorry if this is the message you picked up from my post. My preference would be that conservatives advocate for limited government based on the merits of limited government, not that they become Democrats.

    You see, we've been railing against high deficits and high debt for a very long time. The voting public no longer believes us because there have been no consequences on the scale that we predicted.

    Because we tied the problem of high debt to our principle of limited government, and there have been no consequences as a result of high debt, we have lost credibility on limited government.

    Limited government is itself a valid principle. The U.S. Constitution very clearly lays out the scope of the federal government, and we are violating it in most every way.

    If conservatives would forget the debt argument (we lost) and focus on first principles, we might recover and win back the argument of limited government.

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  6. Very interesting. I have been thinking lately that our problem in social and economic policy is that we don't base that policy on data. That is, we tend to sit in our armchairs and think about things, then design policy to suit our data-free cogitations. It's as bad as theology.

    On the other hand, acquiring trustworthy data is extremely difficult. Every researcher is subject to bias. We cannot even find consensus on how to frame the questions. Compare counterpart reports from Heritage and Brookings to see what I mean. In this environment, exactly who is the informed voter? Do we not just have two opposing teams of indoctrinated voters plus an uninformed mass between them?

    As to your comments on faith, as a practical matter, we cannot live without it. I take much of modern physics on faith as I do not know enough math to understand quantum mechanics. There is no practical alternative to faith is some instances.

    As to your point about debt, well, perhaps you're right. On the other hand, the consequences if you are wrong could be devastating. In this regard, I'd be interested in hearing your thoughts about Greece.

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  7. Very sensible post - every Conservative should read it!

    To me it boils down to what the Darvin (from the Evolution Theory) said: “It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change.” Basically for the Conservatism to thrive again it has to adapt to new reality. However, by denying the reality Conservatism does even have a chance to adapt.

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