The Peter Principle

Two events demonstrate the hubris of the political class in this country. Nancy Pelosi has come out as opposed to the congressional pay cut that is mandated by the administration proposed sequestration as "undermining the dignity of the job". I wonder what the reaction would be if I used that same statement if someone offered me a reduction in salary! Of course her comment comes on the heels of a statement she made last week that the economy was not in trouble because of "overspending", it needed just needed adjusting because of a "budget deficit".

The best illustration of political hubris came while watching the State of the Union dog and pony show. One Australian writer compared the attitude and actions of Mr. Obama to the actions of Captain Queeg in the novel.  "The Caine Mutiny". For those of you who have not read the book it is a beautiful description of a naval officer who has been promoted beyond his level of competence and freezes up when presented with events he has no understanding of or ability to react to. Queeg almost allows his ship to founder when he refuses to take any action other than to repeat previous orders that have proved ineffective during a typhoon.

Faced with what looks like an epic fiscal typhoon Mr. Obama has done nothing at all other than repeating pseudo-Keynesian fiscal mantra that are nothing more than repetition of failed ideas. His inability to recognize the issues his policies have created suggest that he is seriously deficient in mental agility and certainly unwilling to listen to other opinions and suggestions.

Watching him I'm struck by his visible lack of concern and his smug, self evident sense of his own greatness
His programmatic response to the coming debacle is to blame others and to ask for increased taxes on those he calls "the rich". A cursory look at economics reveals, to me, that there are not enough "rich" people to  lower the debt to any measurable extent.

The Laffer Curve, as applied in President Reagan's administration demonstrated quite well that the way to improve the economy and lower the deficit is to lower taxes. But the political class in this country is committed to the idea that only by doing the same failed thing over and over will the economy improve.

That's not economics....that's insanity.