The Big Bear

Turmoil Coming to The Markets: Prepare for a Bear Market in Bonds

The problems we face today come from an attitude that there is such a thing as a “free lunch.” Though the majority of the people may endorse it, rarely do those who seek a free lunch bother to ask who ends up paying for it. It is not just the poor who are looking for a free lunch, the rich do so as well. It’s called welfarism. Endorsing the use of aggression to achieve this redistribution of wealth is acceptable for those who believe they’ll benefit from it. Generally that’s the majority of people.

Some know that the principle of welfarism is a scam and that one group – the recipients of the free lunch – will benefit at the expense of another – the producers of wealth. Others believe it to be moral and the only way society can care for the poor and therefore they endorse government force to redistribute all wealth in a “free and equitable” manner. They ignore the challenging question as to who will produce the wealth to be passed out. Economists like Paul Krugman belong to this group.

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