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What Ahmadinejad dreams, now that he cannot afford to buy the acquiesence of his people with 38-cent gasoline, as he could when the Green Revolution wilted a year ago,
Governments that buy the affection of their people, like people who submit to extortion, find that the deal is not sustainable because the demand for money just keeps going up while the supply dwindles. This is the lesson being learned right now by every state government in America, and that will be driven home shortly to the federal government: you cannot buy people off — in this case by refusing to tax them — forever. For one thing, the cost prevents you from doing the things that government is supposed to do. And for another, the cost just keeps on going up until it breaks you. For a crystal clear illustration of where this road leads, consider the plight of Iran. (For the audio version click here: 0106 Iran etc: When the Gas Bills Come Due) Continue reading
