eggsGovernment is the only institution whose power and budget grow when it fails. A crisis, real or perceived, is considered an “opportunity” for government to expand, as President Obama’s Chief of Staff, Rahm Emanuel, reminded Americans shortly after Obama won the 2008 presidential election.

Housing sales dropped by more than 25 percent nationwide in July, according to the National Association of Realtors, after a federal tax credit for first time home buyers expired in June.

Following on the heals of the previous week’s stunning 484,000 new unemployment claims, the rise to 500,000 announced August 19 offers proof that the U.S. economy is far from the path to recovery. According to a story in the New York Post:

cutting taxesCutting taxes is again in vogue in a Washington, D.C., increasingly dismayed by the utter inability of the massive Obama stimulus package to jolt the economy back to life. President Obama himself has become a grudging disciple of the Bush tax cuts, and is now advocating an extension of the tax reductions beyond their expiry at year’s end — but only for Americans earning less than $200,000.

debtA national debt is nothing to worry about, because “we owe it to ourselves” —so runs one of the more popular sophisms of Keynesian economics.