The validity of Say’s Law stands as the gatekeeper of economic freedom and prosperity. Without it, economic fallacies justify state force, which is multiplied in the name of public salvation.
In 2016, a fissure opened up in the seemingly impenetrable rockface of stultifying Technocratic Socialism. That is unequivocal progress, but it’s also only the beginning of what is going to be a long, uneven, and probably messy global realignment.
In this episode, the king’s magic money box runs dry and he is forced to provide real services in the economy, at which he fails miserably. In the end, the good people decide it is better for the king to stick to frivolous ceremonial affairs.
If the South African government does not tighten its belt, sooner or later it will be forced to do so – or embark on a course of reckless borrowing and/or printing money to fund itself. The consequences of the latter choice, as Zimbabwe showed, can be dire.
Calls for a scrapping of the debt ceiling are being heard afresh, but the debt ceiling is a crucial reminder of the reckless spending of the ruling class.