Sunday, June 28, 2009

Generational theft

Burt Folsom describes "generational theft":
In 1929, eighty years ago, President Herbert Hoover supported (and Congress passed) a bill to appropriate $500 million to the Farm Board to distribute to wheat and cotton farmers to prop up the prices of their crops. The interest payment on that $500 million is about $25 million a year–or $80,000 a day every day for the last eighty years. I say last eighty years because the borrowed money was not really paid back; we just made interest payments and then borrowed more during the next decade...Today we pay for Farmer Jim’s wheat subsidy eighty years ago. Eighty years from now our grandchildren will be paying for the teapot museum set up a few years ago in North Carolina. The challenge for our generation is this; Who has the savvy to develop the political strategy to stop this Ponzi scheme from driving the U. S. into ultimate bankruptcy?

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