All politicians get elected by convincing voters they are the best choice to help improve our economic situation. If they do not understand economic cause and effect they are incompetent as elected representatives. Further distressing is that most media reporters and columnist also lack knowledge of economics and economic history.
President Obama and the Congress congratulated themselves on cutting the budget by $38.6 billion, less than 3% of the deficit. Virtually no one in the mainstream media pointed out how meager that is. Are they that uneducated?
We should be thankful that the new Republican led House of Representatives has stopped the massive Democrat 20% increase in spending of the previous two years, the most staggering increase in Federal spending in USA peacetime history. Yet most of the Liberal media are telling us the sky will fall if we cut back the budget by 2-3%! Is much of the public that ignorant?
Federal spending during the past two years has been approximately double that of taxes raised. The deficit has been paid for by creating dollars out of thin air and some new borrowing.
The mainstream media, President, and Liberal Democrats do not seem to know or care that when a government creates money out of thin air without producing anything of value, you have more dollars chasing the same amount of goods. Prices go up. Our savings are being wiped out because we discover that we are spending more to buy the same amount of stuff as before.
It is obvious to anyone with a basic understanding of economics and finance, that since people can buy less with their earnings, there will be less need for goods. That means more companies will have to cut back production and employees. More people will lose their jobs.
According to the President’s own Congressional Budget Office (CBO), the jobs created and saved by the 2009 economic stimulus packages cost an average of $228,055 per job. We now know that most of the money went to cover government deficits and pay salaries and their gargantuan fringe benefits in state, county and local governments, not the creation of new jobs.
The President and the Liberal Democrats do not either understand basic economics or they do not care. Either way, unless the public gets educated in economic reality, things will get a lot worse. Putting your head in the sand will not make this terrifying situation go away.
James F. Davis
Hello … (tap, tap …) … anybody home ?
“We should be thankful that the new Republican led House of Representatives has stopped the massive Democrat 20% increase in spending of the previous two years…”
James, I sent ‘representatives’ to DC to STOP SPENDING and CUT GOVERNMENT. In what twisted, alternate reality should I be “thankful” that these congress critters merely reduced the rate of growth ?
Should I be equally ecstatic when they “roll-over” and raise the debt ceiling ?
There is a flaw in your understanding if you can posit “The President and the Liberal Democrats do not either understand basic economics or they do not care. ”
They do care … from the very core of their evil being … to wreck the economy and create a crisis large enough to justify enactment of the Marxist controls they have been after since the time of Woodrow Wilson.
Hans, I agree with you that we sent them to Congress to cut not just stop spending. I wrote a follow up article which was not posted that I am pasting below titled “Budget Cutting Joke”. I also agree with your assessment but think it best not to make value judgments about what is in people’s minds.
The follow up article is now posted:
http://ncrenegade.com/editorial/budget-cutting-joke/
Hi James
Your follow up article is good, but your conclusion “If someone in the government does not get serious about cutting back the entitlements …” perpetuates the myth that this behavior is anything but intentional destruction of our economy.
I refer you to these posts:
http://ncrenegade.com/editorial/marxist-roulette/
http://ncrenegade.com/editorial/systematic-and-intentional-destruction-of-wealth/
Perhaps you could point me to where you think I made a value judgement? I believe I accurately criticized a conditional statement (“either / or”) which omitted a more valid alternative.
Cheers & Happy Easter
Hans, I was referring to your comments about ‘wrecking the economy’ to enact ‘Marxist controls.’ I think so too, but I try to avoid suggesting I know the reasons that people do things. My wife’s uncle was head of the Communist Party in her native land for 50 years and yes, they appear to be doing it according to the Marxist book, but many people marginalize what you say factually and can not believe that our own countrymen are trying to destoy our nation.
Happy Easter and David says we would enjoy meeting each other.
What David says is usually true!
Remember, it was Obama’s colleague and advisor that said “never let a crisis go to waste”.
I’m aware that “many people … can not believe that our own countrymen are trying to destoy our nation.”
That level of denial will be our downfall.
I look forward to meeting and a conversation.
H
Yes I agree with most of article but bc state employees don’t have massive benefits. Most are paid 30 to 50 percent less than private sector workers for similar jobs. Now republicans are going on a privatization kick and will spend 3 times the money to do the same volume of work and pretend it is to save money. I wonder when republicans will figure our how to stop kicking the people who vote for them when they do corprate welfare
Some states have very generous benefits and others less so. But overall, government workers have more job security, higher wages and benefits. Wealth producing productive private sector businesses and workers can no longer afford to pay the excessive cost of government. It makes the private sector less competitive which costs jobs. And the cost of taxes reduces their standard of living and job creation ability. There is no incentive requirement to be efficient in the government sector because your job does not depended upon being efficient and profitable. Privitzationhas almost always has resulted in more efficiency. Chile in the mid 190′s is a perfect example.
Maybe up in the northern states but in nc state workers have signicantly lower wages the health care is marginal. I know for a fact there are no cost savings in hiring a firm to do the same job as a state worker in my area. What I personally did over the last couple months would would have cost over 50k and the state of nc got it for a tenth. Yes in some areas it might save money but not all states pay higher wages. Nc has been backing up for 20 years or so while private workers were getting raises state employees were not. On average it cost 3 times more for a firm to do the work after both sides reconcile overhead and profit
One clarification is that a firm will produce the product significantly quicker. Not always better but that depends on the company. In a few incidents it is inferrior and occasionally better but usually equal.
Without the incentive to deliver something as low cost and high quality as possible due to competition putting him out of business if he doesn’t, rarely ever does the non profit oriented government worker do anything as efficient his the private sector counterpart. You may, but you are the exception to the rule.
You are correct and a lot depends on individual work ethics PB both sides. I do realize that it is tough out in the private sector because my spouse frequently works 100 hour weeks for 40 hour pay. The worst I usually have is a 60 hour week for 40 hour pay and it is normally just an extra 10 hours. I was raised on a farm and taught to be loyal regardless of if it is returned. The last ten years in state government has been neglect the next few might be salute the flag and kick the dog.