{"id":12039,"date":"2010-05-21T10:20:01","date_gmt":"2010-05-21T17:20:01","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=12039"},"modified":"2010-05-21T10:20:01","modified_gmt":"2010-05-21T17:20:01","slug":"the-next-bubble-to-burst-government","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/12039\/the-next-bubble-to-burst-government\/","title":{"rendered":"The Next bubble to burst: Government!"},"content":{"rendered":"

I’ve been a bit slow on this one.\u00a0 I have been wondering what sector of the economy was going to over inflate and burst next.\u00a0 The answer has been right in front of me the whole time but the reason I did not see it very clearly is because I was wondering what part of the private economy would burst next.\u00a0 Sure, I knew the government was in trouble, but I did not think of it as a “bubble”, like real estate or the dot.com era.<\/p>\n

A simple headline today put the perfect perspective out there for me to get it.\u00a0 If I apply “bubble economics” to the government sector, it is perfectly clear.<\/p>\n

The economic collapse of Greece is a wake-up call. The unsustainable combination of a bloated public bureaucracy, high deficit spending and unfunded pension obligations busted Greece’s government bubble. Now the birthplace of modern democracy is on the brink of becoming a failed state.<\/p>\n

The Bank of England recently warned that the U.S. is on the road to the same fiscal failure as Greece, and the Obama administration’s insistence on massive public spending and increasing deficits is the reason.<\/p>\n

At this rate, the U.S. government will be the next economic bubble to burst. We’ve seen similar downturns: the information technology bubble in 2000, housing in 2007 and Wall Street in 2008. If unchecked, America’s government bubble will depress our economy with higher interest rates and defaulting state and local governments.<\/p>\n

Politicians Aren’t Businessmen<\/strong><\/p>\n

Federal spending alone this year accounts for 25% of our nation’s gross domestic product. If you add state and local spending, the number is closer to 50%. No economy can thrive when nearly half of all economic output is directed by politicians rather than entrepreneurs and small businesses.<\/p>\n

After big government spending, government employee unions pose a serious threat to America’s fiscal health. Over the past 30 years, union membership has declined significantly, from 23% of all workers in 1980 to about 12% today. But\u00a0the percentage of union members working for government has Read more<\/a><\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

I’ve been a bit slow on this one.\u00a0 I have been wondering what sector of the economy was going to over inflate and burst next.\u00a0 The answer has been right in front of me the whole time but the reason I did not see it very clearly is because I was wondering what part of […]<\/p>\n","protected":false},"author":55,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[251,13],"tags":[],"class_list":{"0":"post-12039","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-big-mother","7":"category-casual-friday","9":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":10068,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10068\/bucking-up-is-not-the-answer-and-even-if-it-were-it-isnt\/","url_meta":{"origin":12039,"position":0},"title":"Bucking up is not the answer, and even if it were, it isn’t","author":"Damon Chetson","date":"October 14, 2009","format":false,"excerpt":"In my past life, I worked in public policy. This was a pretty much disheartening experience because, whether you're on the left, right or center, you'll be disappointed. It's almost never the case that policymakers (read: politicians) want to make good policy. The policies they do enact are mishmashed compromises\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":127,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/127\/oh-good-lord-theyve-got-one-of-our-own\/","url_meta":{"origin":12039,"position":1},"title":"Oh, good lord! They’ve got one of our own!","author":"Greg Swann","date":"July 24, 2006","format":false,"excerpt":"This morning's Arizona Republic has a little featurette on a housing bubble weblog in Gilbert. It's called the Housing Doom Housing Bubble Blog, but I think would it be more sonorous if it were to be named the \"Housing Doom Housing Bubble Housing Blog\" or even the \"Housing Doom Housing\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":13252,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/13252\/joel-kotkin-why-housing-will-come-back\/","url_meta":{"origin":12039,"position":2},"title":"Joel Kotkin: Why housing will come back.","author":"Greg Swann","date":"September 15, 2010","format":false,"excerpt":"Urban savant Joel Kotkin in Forbes magazine:What we are going through now is not a sea change but a correction from insane government and business practices. The rise in homeownership from 44% in 1944 to nearly 70% at the height of the bubble reflected a great social democratic achievement. But\u2026","rel":"","context":"In "Flourishing"","block_context":{"text":"Flourishing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/flourishing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2413,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2413\/mashable-predictions-for-2008\/","url_meta":{"origin":12039,"position":3},"title":"Mashable Predictions for 2008","author":"Lani Anglin","date":"December 23, 2007","format":false,"excerpt":"Mashable is the Internet's (well, the globe's) ultimate source for social media news and information.\u00a0 Mark \"Rizzn\" Hopkins\u00a0is who we all look to for guidance and especially for predictions.\u00a0 This week, Rizzn put together his predictions for 2008 and here's why you SHOULD NOT READ\u00a0his entire article: 1. If you\u2026","rel":"","context":"In "Technology"","block_context":{"text":"Technology","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/technology\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":14492,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/14492\/the-stick-the-carrot-and-the-men-behind-the-curtain\/","url_meta":{"origin":12039,"position":4},"title":"The Stick, the Carrot, and The Men Behind the Curtain","author":"Brian Brady","date":"April 27, 2011","format":false,"excerpt":"Monday, I talked about how real estate is better described as a store of value rather than an investment, referencing the work Reason's Anthony Randazzo published.\u00a0 Randazzo really hit it out of the park because he showed, without a doubt, how the residential real estate bubble started right after 1992.\u00a0\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1962,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1962\/is-greenspan-to-blame-for-the-housing-crisis-and-if-he-is-is-this-entirely-a-bad-thing\/","url_meta":{"origin":12039,"position":5},"title":"Is Greenspan to Blame for the Housing Crisis? And, if he is, is this entirely a bad thing?","author":"Greg Swann","date":"September 23, 2007","format":false,"excerpt":"The second half of a US News dyscomium on Alan Greenspan's Fed:The global spread of capitalism has increased inflation-dampening competition throughout the world and allowed investors to accept lower yields when investing in bonds. What's more, globalization has boosted incomes, in Asia and beyond. That has expanded the pool of\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/12039","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/55"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=12039"}],"version-history":[{"count":2,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/12039\/revisions"}],"predecessor-version":[{"id":12041,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/12039\/revisions\/12041"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=12039"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=12039"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=12039"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}