I understand that most of the people on this board are for small taxes and small state. They believe if you cut most of all the social welfare and support systems and shrink government by laying off hundreds of thousands of “over-paid” government workers we can turn the nation around.
The results of such spending cuts are not as clean “cut” as many may think.
-If we lay-off hundreds of thousands of government workers they will be added to our unemployed. How quickly will the “private sector” turn things around to get these unemployed government workers back to work?
-Every dollar paid by the government to government workers, gets spent by the worker’s family to buy “private-sector” goods and services.
-every dollar given in the form of public assistents and welfare to people who otherwise would live in the street unproductivly gets spent on private sector goods and services.
So it appears that the government does contribute to private-sector success through wages spent by government paid workers to buy private-sector goods and services. With unemployment, underemployment, and shrinking wages the private sector needs as many consumers as they can find to remain profitable…even government consumers. Lets not forget all the private-sector government contracts the private sector fights hard to win (everything from floor cleaner to buildings to paper etc.)
So there has to be a balance here. I think a medium sized government and government spending is healthy as such spending creates jobs through spending on wages and government support that eventually contribute to the profits of private sector companies.
We in some ways learned from history by using government as a vehicle to recharge the economy. Look as far back as Caeser Augustus. he came into a empire that was nearly bankrupt and falling appart at the seams do to a poor economy. He ushered the empire into a new golden age by spening governmetn money on public works and putting people back to work. The money from the govenment to the workers cycled back into the economy and that was the begining of the Roman Empires golden age. He funded these public owrks projects by increasing taxes on the wealthy nobels. The nobels fought at first but in the end the nobels and the rest of the Roman society enjoyed a golden age of prosparity.
Public schools really need to take history education much more seriously.