Thursday, October 16, 2008

It's A Creek... No, It's A River... No, It's A Flood...

Last night Gove and I finished reading Federic Bastiat's article, "That Which Is Seen and That Which Is Not Seen." As is common for me, I did not understand on the first reading but there was one little section that caused me to think that it could be related to our current bailout of the financial problems here in America.

"There is only one difference between a bad economist and a good one: the bad economist confines himself to the visible effect; the good economist takes into account both the effect that can be seen and those effects that must be foreseen.

Yet this difference is tremendous; for it almost always happens that when the immediate consequence is favorable, the later consequences are disastrous, and vice versa. Whence it follows that the bad economist pursues a small present good that will be followed by a great evil to come, while the good economist pursues a great good to come, at the risk of a small present evil".

It seem like we will have a little peace at first, but what about the debt in the future. How long do we keep passing our national debt to our children, who will follow our example and pass the burden on to our grandchildren? I have much to learn about this. It almost seems to heavy. Yet I have to keep trying to understand and learn from the experiences.

The story of the little boy who saves Holland when he sticks his finger in a hole in the dike makes me think of this type of fix. Taxes, taxes, taxes. That's another thing Bastiat spoke about. I think the colloquium will be interesting this week.

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