As the Governing Scam Turns
I’ve found the ProCAP matter to highlight a thoroughly depressing fact of the modern civic arrangement, and it came to a point when Russ stated the following, in a comment to one of Andrew’s recent posts:
If providing a bridge loan is cheaper than taking over the functions that would be lost if PROCAP goes under, it’s money well spent. If not, it isn’t. Why is that so confusing?
I’m also not sure why you’d think it a concern for the city if PROCAP pays back loans with money from federal or other grants.
To the extent that such argumentation sounds reasonable, it emphasizes the approach to government spending that is leading to the downfall of the West. The objective is to find the cheapest way to provide each function, with the list growing every year (as with the state and federal foray into preschool), not to determine what functions government must cease to provide because there is no money.
That ProCAP operates with “federal or other grants” does not help the situation, because government is funded with money taken out of the economy across the board, and it is broke at every level. Here we have a collapsing quasi-public agency receiving a loan from a city in deficit, with both receiving payments from a state that must annually paper over its own fiscal gaps and a federal government in debt beyond imagining.
Mark Steyn’s column in the most recent National Review describes the scheme on the international level:
Oh, by the way, the IMF itself has spent most of the last few years operating with a $400 million budget deficit. So a broke G7 economy [Italy] is being bailed out by a broke transnational organization funded by a broke hyperpower. That seems likely to work.
Government finance has become a giant shell game in which there is no ball to find. Starting from the premise that this or that must be funded through public dollars, the plan is simply to assume that the money will come from somewhere. Miracles and breakthroughs are always possible, but the safe bet is that hard times are coming.