Compromise between Republicans and Democrats in the federal government always has the effect of moving government policy leftward. Why? Because Democrats always act to satisfy their base which is left and growing far left. The Republican base is center right, so any compromise winds up going left by increments.
Moreover, how do you compromise with The Anti-capitalistic Mentality? Republicans have been doing so for more than a hundred years and look where it’s got us. In his book, The Anti-capitalistic Mentality, Ludwig von Mises writes:
“All those rejecting capitalism on moral grounds as an unfair system are deluded by their failure to comprehend what capital is, how it comes into existence and how it is maintained, and what the benefits are which are derived from its employment in production processes.”
Compromise is good when both parties are aiming at the same goal. Compromise is bad when one party opposes capitalism on moral grounds and aims to destroy it.
The time for solving our American fiscal and monetary crisis by tweaking the edges of the tax system has come and gone. Fields writes: “How do we make progress when both sides have taken such strict positions?”
The implication is that "progress" toward a more capitalistic system is possible by compromise. It isn’t. Even a good share of the Republican negotiators are of the anti-capitalistic mentality.
Fields asks incredulously: “Conservatives wouldn’t accept a $500 billion tax increase combining higher rates on the wealthy and the elimination of tax disparities if it was accompanied by $5 trillion in spending cuts where the timing of both were well matched?”
I wouldn’t. To believe the Democrats would actually cut (and I mean REALLY cut) federal spending by $5-trillion is fantastically naïve. Why? Because Democrats are rabidly anti-capitalistic and Republicans are only moderately less so. Until that mentality changes, there is no hope in compromise.
Now is the time for those of us who are of the capitalistic mentality to take a strict position and stand firm: No new taxes.