A decade ago, the federal debt was just 35% of GDP. It is now more than double that and projected to reach 86% in 2026. But thatís just the beginning. The annual budget deficit projected for 2026 is 5% of GDP. If it stays at that level, the debt ratio would eventually rise to 125%.
The electorate is heavily divided by race, ethnicity, gender, class. Lee Kuan Yew understood and would not be surprised by the result. the finer points of fiscal prudence is no longer in the cards. Entitlements will grow, not shrink. Democracy is failing.
Mr. Lee: Why should I be against democracy? The British came here, never gave me democracy, except when they were about to leave. But I cannot run my system based on their rules. I have to amend it to fit my people's position. In multiracial societies, you don't vote in accordance with your economic interests and social interests, you vote in accordance with race and religion. Supposing I'd run their system here, Malays would vote for Muslims, Indians would vote for Indians, Chinese would vote for Chinese. I would have a constant clash in my Parliament which cannot be resolved because the Chinese majority would always overrule them. So I found a formula that changes that...
People aren't voting for the good of the commonwealth. The donor class chooses most of the candidates. We have deep racial splits where most issues (e.g. the federal debt) is not even a consideration. Identity is a much bigger consideration. I am way past thinking the dysfunction can be turned around.
|Share |||By Randall Parker at 2016 March 25 10:10 PM|