THE COST OF BIG GOVERNMENT

"How can we afford to pay for the cost of BIG government if we do not raise taxes?"

The cost of government is out of control! Our government is now spending nearly a 1 trillion dollars a year, MORE THAN IT TAKES IN.

The total accumulated US National debt since our founding was 10.6 trillion in January 2009 when Obama took office. Eight years later under the Obama Administration, the US national debt was 20 TRILLION.

The 17 trillion in debt is not counting our unfunded liabilities like social security, Medicare, prescription drugs, national healthcare or public pensions. The actual US national debt is well over 71 TRILLION, when counting unfunded liabilities.

The US debt has increased nine trillion, just in the last five and a half years alone. That is more than all the first 42 Presidents combined.

The out of control government debt that we are incurring each and every minute of every hour of every day, week by week, month by month and year after year, indefinitely; is to cover the costs of funding our ever expanding, out of control, cost of big government.

When government spends more than it takes in, the gap must be funded with debt. “The debt ceiling" or "debt limit" is the maximum amount that the government authorizes itself to borrow at any given time.

When the cost of big government reaches its latest "debt limit", instead of cutting government spending, the government just raises the its "debt limit".

Increasing government debt increases the amount of debt owed by the citizens.

Government is Not Self-Funded

Government is necessary to the existence of civilized society.

Governments set the political direction and control over the affairs of states, communities and societies. The "government", public sector is "the area of the nation's affairs under governmental rather than private control." (Dictionary.com)

Governments are not self-funded. Government bureaucracies are an expense on the private sector community. Governments rely on taking money from the private sector community to pay for government costs. The bigger government gets, the more expensive it is for the private sector community to fund.

Most people would agree that government services are needed. What people may disagree on is the size of government necessary. Some will argue that we should have a limited government. Others cannot grow the government big enough, fast enough. What needs to be understood is, there should be a BALANCE between the size of government and the private sector's ability to pay for the cost of big government.

Most government agencies try to survive within their budget. Many agencies operate their budgets in the "red". When government costs exceed their budget, government management turns to the private sector community for more, and more and more funding.

Bigger government means more government costs on the private sector community. As government grows, so does the cost of funding it.

BIG GOVERNMENT'S QUEST TO SURVIVE

"Government" is made up of people. People that work for the "government" may include family members, best friends, neighbors and even coworkers. Most people that work for the government are as honorable, praiseworthy and respectable as any citizen.

All individuals have their survival needs as guiding principles for making decisions.

Just as all individuals have their survival needs as guiding principles for making decisions, so do groups of people. Organizations make policies that support the survival of the group. Groups coalesce around common realities and goals. Groups seek to advance the survival of the group and its purpose.

Hence the growth of government has taken on a life of its own.

GROWTH OF GOVERNMENT

"Government" is a term that encompasses many government groups, agencies, bureaus etc.

"Government" is made up of many different groups. The many different groups with differing purposes each seek to advance their own survival.

"Government" has leaders that organize, advance goals and policies for the survival of government. "Government" leaders, politicians also seek the survival of their own positions of power.

"Government" seeks to expand and advance agendas group by group. Every new group, agency or bureau created has their own inherent survival needs at stake. So you get a "Government" however honorable the individual people may be, taking on an ever expanding growth of its own.

Government bureaucracies, pet social programs, once created have their own livelihood interests to fight for once established.

The survival needs and wants of "Government" are sometimes at cross purpose with the needs and wants of the private sector community that funds it.

GOVERNMENT EXPANSION

The US Government was created to be of the people, by the people and for the people; i.e. democracy. The roles are now reversed. Instead of the people telling the Government how they would like to be governed; Government has taken it upon itself to tell the people how they will be ruled.

Government now takes it upon itself to increase wages and create new agencies that are not at the will of the people at the expense of the private sector community.

Government is reluctant to reign in expansion or its own spending in good times or bad. As a last resort, under dire economic pressure, given no alternative, government may reluctantly make some temporary cut backs. The path of least resistance is to return to the private sector community again and again and again for more private sector funding.

Strong politically connected unions fight for the expansion of more government and more benefits. Strong politically connected unions fight for the expansion of more government, to collect more union dues, to contribute to the politician's campaigns that advocate for bigger government and more government union jobs.

Government had nothing to do with the creation of the wealth it takes from the private sector. Yet, governments seek to levy fees on the private sector wherever and whenever it can get away with it.

Boomtown: The Cost of Big Government

Posted By: cablenewsguy

PRIVATE SECTOR COMMUNITY

Posted By: The ACU

The private sector community can only afford to support limited government costs. When the cost of big government is too great, the private sector community suffers and there is less money that can be collected for government costs.

What money that exists in the private sector community is resources that the consumer and producers use to perpetuate the free flow of goods and services. When resources are taken out of the private sector community, there are less economic resources left to perpetuate the free flow of goods and services. When there are less goods and services being exchanged for money, there is less tax revenue being generated for government spending.

The size of government, with all its inherent waste, fraud and abuse, endangers its own survival by over burdening the private sector community that has to fund the cost of big government.

Goods and services at prices consumers are willing and able to buy, is what fuels the economy. Higher and higher business costs to fund the government push the prices of goods and services artificially high.

When you raise taxes on individuals and businesses, you reduce the means available to produce or purchase goods and services. When you reduce the demand for goods and services, you reduce job opportunities. When you reduce job opportunities, there is less money in the hands of the consumer. There is less goods and services being bought. There is less money being collected to fund the government. And so, the out-of-control economic downward spiral is engaged.

THE FIX IS IN

The current US debt crises started with an overzealous; intrusive government; meddling in the affairs of private sector enterprises. The current US economic policies to fix the debt crises are to grow the government more and create more regulations on the private sector.

We "need a "jobs bill" to fix the problem. A Democrat's "jobs bill" is a "stimulus package" of more barrowed money. The "jobs bill" of "good paying jobs" is to expand the government by hiring more government workers at the expense of the private sector.

The bigger government gets, the more union dues can be collected for the politicians' campaigns that seek to expand the government. Did you know that it is your tax dollars that pay for the government employees that pay the dues that go to the campaigns of politicians that seek to expand the government?

DEBT MANAGEMENT IN GOVERNMENT

Quantitative Easing Revisited by Omid Malekan

Debt is borrowing against anticipated future earnings. Debt is using future income to pay for present expenses. How long could you run a household if you continue to borrow over 40 cents on every dollar you spent with no plans to cut spending? How long could a company survive by barrowing 40 plus cents on every dollar they spend in perpetuity? How long could a city survive by barrowing 40 cents on every dollar that they needed to spend on their annual budget?

Most citizens do not realize that the US government borrows 40 plus cents on every dollar it spends and is increasing the debt at a rate of 3.5 billion dollars a day, just to fund our out control government costs. That means the government is spending over 40 percent more than it takes in, against the future earnings of the private sector. The problem is, the growth of the government itself is draining the resources out of the private sector community that could have been used to grow the current US economy and adequately fund a limited government.

"We are trying to put people back to work", at what cost? By "putting people back to work" in the government (public sector), we are expanding the cost of big government. Expanding the cost of big government on backs of the private sector community is the policies that got us into this mess in the first place.

The "public sector" makes money only when the "private sector entrepreneur" can supply needed and wanted goods or services at prices the consumer is willing and able to pay. The more money resources that are taken out of the private sector businesses, the fewer resources there are available to produce goods or services at prices the consumer can afford.

"ECONOMY RECOVERY"

We are said to be an "economy in recovery". If we were an economy in recovery, we would be on a path of debt reduction instead of needing to raise the national debt ceiling. We are 11 now 12, 13, 14, 15, 16 and now 19 trillion in debt and plunging deeper in debt exponentially every second of every day, with no sincere attempts to curb spending. It doesn't take a Harvard education to see that increasing our debt into the next millennium is not an economic recovery strategy. Yet Obama could care less about increasing government spending at the determent of US solvency...

The Debt has increased $9 TRILLION since Obama took office. That is MORE THAN ALL the first 42 Presidents COMBINED. Obama has no plans to decrease spending. He only has plans to increase government spending to "fix the economy".

If you had a continuous influx of borrowed money you could probably show some impressive false statistics too.

Borrowing money for emergencies and paying it back is practical. Borrowing money to infinity is not an economic recovery plan. Borrowing money to infinity is certain economic calamity. The REFUSAL to do anything about is… Well it is not an economic recovery plan.

"We are in an economic recovery"??? The expanding debt is the real measure of what kind of economic recovery we are in.

At this rate, what do we do in an emergency?

SOLUTIONS TO THE CURRENT US ECONOMY

How can we afford to pay for the cost of big government if we do not raise taxes? Answer, wrong question. Right question, how can we reduce the cost of big government on the private sector entrepreneur (businesses) so they can reduce prices and raise the demand for goods and services?

How can we reduce the cost of big government on the private sector entrepreneur so they can reinvest their profits to grow their businesses, create jobs and put more money in the hands of the private sector community? More money in the hands of the private sector, not less equates to more commerce, which means the government collects more revenue.

As the current US economy starts to come back, and job opportunities are coming back, government needs to slash bureaucracies to bring the current cost of government back into a viable range that the private sector community can afford. Expanding the government at the expense of the private sector is the exact wrong thing to do.

We need to remove the "boot off the throat" of our energy producers so they can tap our natural wealth resources.

We need to create a graduated FLAT TAX rate (a FAIR tax rate) to simplify the tax code; give prediction and planning to the wealth creators; and ensure that everyone has "skin in the game".

This will make America a "Business Friendly" environment once again, and bring investments flooding back into the country. We need to return back to being the economic engine of the world.

Creating a robust private sector community that can afford to adequately fund a limited government is the best investment plan for the current US economic recovery.

We also need to have the best military capabilities in the land. Not to be abused, but as a deterrent. Deterrents of war are cheaper than fighting a war. World peace is the best opportunity for creating world prosperity.

Exit "The Cost of Big Government"
to "Public versus Private Sector" here.

Exit "The Cost of Big Government"
to "Center for Money Making Ideas" home page.