Thursday, January 20, 2011

Republican Study Group Issues Proposed Budget Cuts

Since the bulk of the cuts would be salaries for the people implementi­­ng these programs, what is the plan to address the resulting unemployme­­nt, the loss of tax revenues for those left unemployed and cover the unemployme­­nt payments to those whose jobs will be cut by the budget reductions­­? (And we'll forget, for the moment, the impact of the loss of those federal salary dollars on the small businesses around the country where the now unemployed workers once spent their money.)

The primary flaw in GOP plans to cut spending, both at the federal level and at the state level (as far as I have seen) is that they are all shortsighted, and imagine that the problem can be addressed by cutting spending. The fact of the matter is, however, that cutting spending only serves to exacerbate the problem, for the most part. Cutting government spending leads directly to increased unemployment, because government spending is jobs. Not only that, they are some of the best jobs left, since our industrial base has permanently outsourced most of the country's best paying manufacturing jobs.

If Republicans were really serious about addressing the problem, they would own up to the fact that tax rates are unrealistically low, that past tax cuts did not create jobs, that government spending is one of the surest ways to increase employment, and that paying higher taxes to live in a healthier, more prosperous country is actually a good thing. The reality is, the countries with the lowest tax rates are places most of us would not care to live. That is not a coincidence, it is true by design.

Republican Study Group Issues Proposed Budget Cuts