A long long time ago i wrote a thesis on the displacement effects of revenue and spending in government...my thesis showed that the more revenue a government has at its disposal, including borrowings, the more it finds to spend it on...this finding was in sharp contrast to the common thesis of the day that government spending was driven by demand...well it turns out that commonly held idea, or ideal, is wrong....
fast forward to Paul Ryan (the Republican Chairman of Budget Committee in House of Representatives in Washington DC and next Vice President of the US) he understands my thesis...if elected Vice President he will work to cut the supply of revenue to the US government and thus limit its impact on America...he, like me, believes this is a necessary first step for the US to begin to arrest its $US16 Trillion of public debt...if Ryan is not elected Vice President he will continue to work to cut revenue collections for the US government....
Paul Ryan has got hold of a truly 'big idea' for government in the US...
