Showing posts with label Sequester. Show all posts
Showing posts with label Sequester. Show all posts

Friday, March 08, 2013

Anti-Spending Anaphylactoids

As we get closer to the Easter holidays, you might want to prepare yourself for that crazy uncle at your family gathering who will likely be foaming at the mouth about federal spending. A good article to show him is this one. The fact is, folks, that when the government spends less money, it has a real world impact.

These reductions, economists say, act as a drag on the economy. Former park employees, clerks, and firefighters such as Lykins are buying only the necessities. Cities are deferring road work, which means contractors aren't hiring people to pour concrete. By far, the largest impact is on school systems, which are laying off teachers, counselors, and janitors.

With the sequester kicking in last Friday, this sort of thing is now going to happening on a national scale. The anti-spending anaphylactoids seem to be operating under the assumption that federal spending occurs in a void filled with evil, darkness and nothing else. Never mind the fact that while all the spending is going on there is revenue coming in and a 15 trillion dollar economy out there that creates the need for government services.

When you cut these services, people like Brian Lykins are affected. "A lot of the private sector depends on the public sector," says Chris Hoene, director of research and innovation at the National League of Cities in Washington. "There are estimates that for every $3 spent at the municipal level, there is $1 in new private-sector activity."

The sooner we accept the fact that government spending is essential to our economy and, more importantly, that as our economy grows, our spending must grow as well, the better position we will be in to finally tackle our long term, economic concerns.

Saturday, February 23, 2013

Let It Happen

There are a whole lot of folks that are worried these days about the sequester. The cuts that are going to happen, they say, are going to be damaging to our country and Congress must reach a deal by March 1st. I say let it all happen.

In fact, let's see how our county does for a while when federal spending is significantly cut as it will be next Friday. We should operate with these new spending levels for at least six months to illustrate exactly what it means to make the cuts that the Right perpetually whines and cries over.  It's a big opportunity for the Ayn Rand worshipers out there to strut their stuff.

Let's see how a 16 trillion dollar economy does with minimal services. Have at it, people!