On...The Animal Spirits of Capitalism

Golden Geese and Animal Spirits

Michael Barone has an interesting piece in US News & World Report called Crushing those Animal Spirits. He raises some good questions regarding how much the investment class will allow itself to be taxed before they head for the hills and squirrel their money away instead of investing it. I've used the Golden Goose metaphor in many conversations, he uses Animal Spirits but it does come from the same dilemma.

I'll sum it up for you.

Democrats love the golden goose [capitalism] but are impatient and want more golden eggs so they squeeze the goose's neck and prod his belly and generally threaten to kick its ass. The majority knows they can't push too hard for they risk killing the goose, which they rely on to make the world a better place and provide numerous dimensions of equality. So they tinker with now much they can shackle the goose and still have him be cooperative. And by all means they can't let that goose fly around willy-nilly and unregulated. I thought Obama was pretty smart during the campaign because he appeared to know how to shackle the goose and get a few more eggs out of it without killing it. But then came his waterboarding Stimulus Plan, crowbar Bailouts, and then the grand-daddy Iron Maiden Budget. (Poor Goose!) Now I don't think he has a much of clue on how to get the goose to work with the Democrats. He seems prepared to use this "crisis" as a "great opportunity" to shake the hell out of this already sick goose. Some Dems like Evan Bayh and crazy CNBC econ-man Jim Cramer are starting to notice how hard he is prepared to throttle the goose and it should scare them and anyone who is fond of the golden goose.

Stuff the Beast
Another theory, more devious, yet effective regarding Obama's overarching scheme of EuroSocialism is called "Stuff the Beast." first mentioned in Ross Douthat's piece called "The Pursuit of Social Democracy." If this is really what he is doing even my post-election bi-partisan spirit will be on life support.