Wednesday, April 20, 2011

What does Charles Kendrick consume from government?

The Wbosphere is talking about an article from Bay Citizen by Ms Stevens.

The article concerns a Charles kendrick with his $68 million fortune inherited from the Schlage Lock company. The claim is that Mr. kendrick does not consume government services, so there is no gain from taxing the guy more at the federal level. What does Mr. Kendrick do? He manages his four cars and keeps his money in stocks and bonds. Otherwise he is just another consumer in the wealthy Presidio Heights of San Francisco.

Mr. Kendrick does consume a large federal good, he gets a major financial insurance policy from Congress, courtesy of DeLongs demand that Congress guarantee 'safe assets'. His fortune is maintained automatically only because he is protected from the turbulance of government restructuring.  The price the middle class pays for Mr. Kendricks and DeLong's ludicrous policy is a government structure unable to apapt to changing conditions.

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