From a psychological point of view, one could argue David Stockman’s views on the current state of the U.S. economy and last 30 years of inorganic governmental stimulus (e.g. 30 years of borrow and spend) is analogous to Freud’s definition of the superego.

If you slept through that Psyc 101 lecture, here’s a recap:

The Super-ego strives to act in a socially appropriate manner, whereas the Id just wants instant self-gratification. The Super-ego controls our sense of right and wrong and guilt. The Super-ego works in contradiction to the Id (our hedonistic and primitive impulses).

Stockman’s latest interview with the WSJ illustrates this analogy fairly well, where he is one of the few true conservatives brave enough to tell it like it is versus continuing to spoon feed us delusions in the hope of inspiring additional confidence.

This was not a real prosperity that we had in the 90s and the last decade. This was a phony prosperity that came out of massive borrowing and massive money printing. It isn’t stable. It isn’t sustainable. And the politicians are all, in both parties, deluded if they think we can continue to do the same.  – David Stockman

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Not exactly the kind of stuff that boosts confidence, is it? Then again, how could it? In this respect, it’s impossible to sell the positive aspects of a hangover when your head feels like a hot air balloon.

But, as any therapist would ask if they encountered a patient who had difficulty dealing with the conflict between their Super-Ego vs. Id and the damage caused by their spending impulses: do you honestly believe there are no negative consequences to past hedonistic behavior?

Stockman has repeatedly pointed out that true fiscal conservativism no longer exists in the either of the political parties (one reason why I’m a recovering Republican) because Capitalism, as it exists post 1980, has steadily been been engaging in an under-the-rug policy of “recycled Keynesianism” by routinely injecting massive doses of government steroids stimulus into the economy.

Being that delusions are easier to accept than reality, and the fact that many Americans would rather be kept in the dark than see the real numbers, guys like Stockman who promote true fiscal conservatism will be shunned in favor of the politicians who adopt policies that perpetuate the status quo by continuing to enable our spending addiction. In other words, cotton candy and peyote in the KoolAid are easier sells than than higher taxes and austerity because no one wants to talk about tomorrow’s hangover when you’re rocking a righteous beer buzz.

And therein lies the big picture dilemma for America’s leaders: how much truth do you tell the people that make up a freewill, confidence driven civilization when the prosperity of that nation is largely consumer driven.