Cut the Budget - as Long as it Doesn't Cut Me
I'm seeing more and more commentary on something I brought up a while ago. It comes down to this: people want government to cut the budget - so long as it doesn't affect them.
It's a natural reaction, I suppose. No one likes giving anything up that they already have. Just look at the protests in Wisconsin by government employees. In spite of the fact that the state can't continue to fund the state employees' existing benefits, the employees won't budge.
But here's the obvious problem: this approach won't work. It does seem kind of obvious doesn't it? If there's no money coming in, then cutbacks are inevitable. It's just like if you lose your job and your family income goes down. You have to cut back, right? Doesn't - or I should say shouldn't - this apply to state employees now? Money coming in to the states' treasuries is drastically down. So what gives? What are the state employees in Wisconsin hoping to accomplish?
I suppose they're thinking that the people of the state of Wisconsin will buy their story - that Republicans (the state government majority party) are unfair to working people. But that still leaves the question of where is the state going to come up with the money to fund the salaries and benefits of the state employees.
What happens if the state raises taxes or cuts services to its citizens - most of whom are not state employees - to fund the state employees' salaries and benefits? Is it possible that the citizens of Wisconsin will rebel at this idea? I really don't know. If they do rebel, the state will have to take on more debt. Is that possible? Will the municipal bond markets - already reeling because of the fact that many states budgets are bleeding red ink - allow Wisconsin to float more debt?
Of course, there's always that proposal by big banks like JP Morgan and Citibank to lend directly to states. Yep, they've already proposed lending to states who have trouble floating bonds. Maybe that will provide a "solution."
But of course you and I know it's no solution. All it will do is increase the total level of debt of the states. That's the same solution the federal government has been taken to the problem of too much debt (part of the reason for our recent recession): add more debt. How long will that be able to continue?
Anyway, we'll find out. And - yet again - meaningful cuts continue to be elusive. Because while everyone seems to agree cuts are needed, no one seems to want to accept any cut that negatively impacts them.
What's up with us? Are we all so addicted to government largess that we can't find our way through the day without hand-outs? I'm not talking here about poor people, or hungry people, or people who desperately need medical care. I'm talking about the average American who now seems to feel "entitled" to subsidies for more and more of their daily living.
We've all heard the term "welfare mentality." It's time to recognize that too many of us have an "entitlement mentality." We expect - no, we demand - entitlements from the government. And we have no intention of letting go of anything we've been promised, never mind what we're already receiving. Have we really become like the mob of the Roman Empire? What happened to the self-reliant American?
It's a natural reaction, I suppose. No one likes giving anything up that they already have. Just look at the protests in Wisconsin by government employees. In spite of the fact that the state can't continue to fund the state employees' existing benefits, the employees won't budge.
But here's the obvious problem: this approach won't work. It does seem kind of obvious doesn't it? If there's no money coming in, then cutbacks are inevitable. It's just like if you lose your job and your family income goes down. You have to cut back, right? Doesn't - or I should say shouldn't - this apply to state employees now? Money coming in to the states' treasuries is drastically down. So what gives? What are the state employees in Wisconsin hoping to accomplish?
I suppose they're thinking that the people of the state of Wisconsin will buy their story - that Republicans (the state government majority party) are unfair to working people. But that still leaves the question of where is the state going to come up with the money to fund the salaries and benefits of the state employees.
What happens if the state raises taxes or cuts services to its citizens - most of whom are not state employees - to fund the state employees' salaries and benefits? Is it possible that the citizens of Wisconsin will rebel at this idea? I really don't know. If they do rebel, the state will have to take on more debt. Is that possible? Will the municipal bond markets - already reeling because of the fact that many states budgets are bleeding red ink - allow Wisconsin to float more debt?
Of course, there's always that proposal by big banks like JP Morgan and Citibank to lend directly to states. Yep, they've already proposed lending to states who have trouble floating bonds. Maybe that will provide a "solution."
But of course you and I know it's no solution. All it will do is increase the total level of debt of the states. That's the same solution the federal government has been taken to the problem of too much debt (part of the reason for our recent recession): add more debt. How long will that be able to continue?
Anyway, we'll find out. And - yet again - meaningful cuts continue to be elusive. Because while everyone seems to agree cuts are needed, no one seems to want to accept any cut that negatively impacts them.
What's up with us? Are we all so addicted to government largess that we can't find our way through the day without hand-outs? I'm not talking here about poor people, or hungry people, or people who desperately need medical care. I'm talking about the average American who now seems to feel "entitled" to subsidies for more and more of their daily living.
We've all heard the term "welfare mentality." It's time to recognize that too many of us have an "entitlement mentality." We expect - no, we demand - entitlements from the government. And we have no intention of letting go of anything we've been promised, never mind what we're already receiving. Have we really become like the mob of the Roman Empire? What happened to the self-reliant American?
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