Comments on: Krugman’s argument for bloated government Bridges, budgets, bonds Mon, 24 Nov 2014 00:29:08 +0000 hourly 1 By: Ludendorff Thu, 08 Mar 2012 17:22:36 +0000 The federal debt interest rate is literally below inflation, adding to the federal debt is currently not a problem.

The increased spending on police and education reflects the ramping up of education standards worldwide. I understand the need for reform, but cutting funding to education isn’t the solution. The same can be said for law enforcement.

In many ways, the idea of cutting government spending in a recession makes no sense. Programs like education and law enforcement a) directly pump money into the economy, raising employment and b) have overarching benefits for society, no matter where the economy is. If those programs are not worth our spending, I don’t know what is.

As for unsustainable local/state governments, there is definitely a problem there. I advocate a serious resturucturing on a state-by-state basis, but only AFTER unemployment reaches normal levels. There’s no point in sacraficing jobs for a balanced budget: there is no short-term benefit, and the long term benefits won’t be realized if we keep ourselves in this rut for too long.

For those who say “stop spending money we don’t have,” I say stop looking at marcoeconomic policy like you would a personal bank account. Large governments like the USFG can handle the debt burden. WWII proved that, an example classical economists would love to forget.

By: LetsTalkMunis Wed, 07 Mar 2012 21:43:10 +0000 Structual deficits exist when a City spends more than it earns (via property taxes, sales taxes, and fees). Over the past 3 years, these deficits have been plugged by Federal and State aid as well as cash reserves. Now the cash reserves are gone and Feds and States have limited funds to help plug the gaps….lets not keep kicking the can down the road and lets stop spending more than we earn!! Granted, it all starts with politicians that are willing to negotiate labor contracts (which are usually 75% of the general fund budgets) with the taxpayors best interests at heart.

By: My1stComment Wed, 07 Mar 2012 06:43:52 +0000 No doubt all government workers, especially management, could be paid 20% lower wages for the benefit of having such steady employment compared to the private sector. The hiring practices are very weak and the crap floats to the top. Education is a farce and we are losing the skills needed to function as a civilization.

The budget draining salaries and pensions for so-called “safety” members are the worse as they retire early at puffed up salaries or disabilities. I would bet that the Corrections department has been the nastiest part of that group as our society has incarcerated more and more for the ridiculous drug war that also pumped up the number of state lawyers and cops.

Pharmecuticals, Hospitals, and doctors could use a smack down on their quackery and overcharging.

The oil barons drumming up wars across the world should lose their shirts and be nationalized.

However, maybe the biggest problem and root of all evil is Wall Street = Federal Reserve and the congress/executive that feeds off them, who should be put in jail for crimes against the citizens because they have completely messed up our economy. We need a financial system reboot with a tax on the speculative day trading done by the “expert” computer systems and outlaw derivatives. This is no way to run an economy and country.