| JR Or - 9/4/2012 12:57
ehoff...completely agree. Any cuts in spending will be met with a corresponding drop in economic activity, which will result in further declines in tax revenue.
I'm not sure - don't you think private enterprise could step into the void? If the regulatory environment was fixed/rewritten/eliminated, there would be opportunity. I think part of our problem is that we think the government is the only game in town. Putting our government on a crash diet is likely the only course of action that can be taken. I'm sure there will be lots of folks (from welfare to bankers) complaining, but once free of the bondage that government spending is a lot of the time, things do get better. Just ask the welfare gal from Detroit that claimed the governor's cuts were going to kill her - she later appeared on tv all cleaned with a good job and a big thank you for the governor's 'tough love' (this may have been 10 yrs ago now and I may have the wrong official).
In the same way, many of us farmers have learned to 'farm the program' as much as we farm the land. Oddly, many of us think it's time to go. It will hurt all of us, but it will also eliminate some of the unintended consequences of the programs which sometimes hurt much worse. Long term it's market distortion and just another spiral of issues followed by another gov't program. Is food security important, sure, but the program doesn't prevent a drought.
I agree that inflating our way out is probably not a lever that will work this time. |
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