Sounds like the beginning of a joke, sort of like, “A priest, a rabbi, and a minister walk into a bar…”
But I have a serious point to make. I’m currently in Anguilla (yes, this is just one of the sacrifices I make in the fight for liberty), where I just gave a speech to a local business group.
One of the topics I addressed was Anguilla’s fiscal policy.
Like many jurisdictions around the world, Anguilla has a red-ink problem. And like all the other places we could mention, the deficits and debt exist because government spending rose much faster than inflation over the past 10 years.
So I decided to create a new “Golden Rule of Fiscal Policy” based on all these observations (I would have called it Mitchell’s Law, but I’ve already used that title for another purpose).
Good fiscal policy exists when the private sector grows faster than the public sector, while fiscal ruin is inevitable if government spending grows faster than the productive part of the economy.
This is the underlying message of my video showing how to balance the federal budget. Moreover, all of the countries in this video enjoyed significant fiscal progress by following the rule. And it explains why I’m very impressed with Senator Corker’s proposal to cap the growth of federal spending.