US Must Cut Public Sector or Fall Like Rome

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  1. Cagsil profile image81
    Cagsilposted 8 years ago

    Hey Hubbers,

    Have another article worth reading.

    1. Rafini profile image86
      Rafiniposted 8 years agoin reply to this

      When a government exists it accepts the responsibility of caring for the people who help it exist - the people who assist in maintaining and defending it.  The trick for government is to determine who deserves how much of what and for how long.  Once government is able to define the answers, ]i]if[/i] government is able to find these answers, entitlement will no longer be an issue.

  2. ilmdamaily profile image59
    ilmdamailyposted 8 years ago

    Well, at least they've eased off the nazi germany analogies:-)

    Interesting article.

    I'm inclined to disagree with him though.

    As necessary as it is to reduce the size of the public sector - it is ultimately useless.

    The titanic's sinking - arguing over who gets paid what only distracts from the monumental degree to which we are all (euro, dollar, yen holders) completely f*cked.

    The question isn't "how much should the public sector be paid?"

    It's "should the public sector exist at all?"

    1. psycheskinner profile image83
      psycheskinnerposted 8 years agoin reply to this

      I don't know about you but I like having roads, policemen, firefighters etc.

  3. leeberttea profile image52
    leebertteaposted 8 years ago

    Oh no! Did you read the post from Krugman? The USA must spend more! Much more! A trillion dollars wasn't enough stimulation and only by spending trillions more can we insure prosperity. Trillions on health care, trillions on energy, trillions on war, trillions on medicare, unemployment, welfare, financial reform, bailouts, trillions on the new green econmomy, trillions, trillions! Keep spening, keep borrowing, keep printing money and we'll all see prosperity!

    1. ilmdamaily profile image59
      ilmdamailyposted 8 years agoin reply to this

      lol right on.

      The future called: they want their money back.

    2. Doug Hughes profile image57
      Doug Hughesposted 8 years agoin reply to this

      Lee - Paul Krugman is a nobel-prize winning economist who backs up his theories with facts and history.  We got out of the Great Depression with the biggest federal deficit-spending jobs scheme ever undertaken. The federal debt expressed as a percent of the Gross Domestic Product (GDP) went up to 120%. That means the debt was more then the country produdes in a year. The current debt as a percent of GDP is under 80%. That's high, but manageable. In that time, called World War II, unemployment went from 25% to something close to zero percent as debt skyrocketed.

      Strip away the flags, battles, parades and ideology. In economic terms WWII was a HUGE deficit spending scheme that worked.  Getting the debt under control was not done by slashing entitlements. Vets were educated and given housing opportunities. The war debt was paid off in the BEST of economic times (for the middle class) with high taxes for the very rich - tax rates for the top tier over 65% and it never slowed down the growth and prosperity of the 20 years that followed WWII.

      Krugman is right. Massive spending in the right places Willl bring about long-term economic prosperity. The economic facts show the federal government should SPEND in bad times and drive DOWN the debt in prosperous times. The GOP wants to lower tax rates (for the rich) in ALL times and that's been the source of problems.

      Look at this graph -

      1. leeberttea profile image52
        leebertteaposted 8 years agoin reply to this

        Uh yeah... not! Every thing you said is simply not true! Maybe you should read what Bernacke said was the reason we got out of the depression.

        This has been discussed here before. Unemployment remained in double digits throughout all of FDR's 4 terms, and it wasn't the war that got us out of depression, wuite the contrary, it extended the pain. In any case you'll never believe the truth.

      2. Daniel Carter profile image74
        Daniel Carterposted 8 years agoin reply to this

        The type of spending described acts as if there are no consequences to the future. The future is not considered in the equation, if for no other reason, because it can't be predicted accurately.

        The theory is not incorrect, that is, to keep goods, commodities and money flowing instead of stagnating. The idea of scarcity always causes a knee-jerk reaction for the average person to save, make do, and hoard. Therein lies the rub.

        I personally don't think it's all about spending, nor is it all about scarcity. It's about keeping a little aside for unexpected events and needs, and keeping the flow going by living life.

        The gov't and the banks don't want us to save, according to headlines and analysts. They want it all in motion. That was never a wise idea.

        The truth is that there IS enough goods and commodities for all. But until greed and power are at least partially tamed, we are going to see more of the same, regardless of Obama policy, economic forecasts, etc. The basic answer for me as an individual is to balance my finances, not to throw it all into money machines or into hoarding. Neither work.

        1. leeberttea profile image52
          leebertteaposted 8 years agoin reply to this

          That's the truth which both the left and the right seem to discount, that government itself promotes consumption, for the sole purpose of enriching the rich and growing itself, and that is especially touted by Keynesian economics, which tries to solve the "problem" of "under consumption".

          The government should promote savings and investment, not consumption, and it should stay out of the markets. If they did markets would work efficiently the way they are supposed to and recessions would be swift and short.

  4. lovemychris profile image68
    lovemychrisposted 8 years ago

    You forgot the Bush tax cuts. Trillions for trillionaires.

    And it's hardly trillions on welfare and unemployment...unles you mean Social Security and Medicare??

    How about we do what Obama is in the process of doing...getting the hell out of the Middle East and Afghanistan.

    Take our money and weapons back from Israel, let them stand on their own, and face their crimes on their own!

    Get out of other countries and we will have plenty to spare.

    Means test SS after you spend your input. Single-payer healthcare will cut tremendous costs.

    Stop the profiteering and profit-based economy, care for our citizens before we care about a companies bottom line!!

    Kill NAFTA, bring the jobs back home.

    Bottom line: Cut from the top...there is PLENTY to spare.

    1. leeberttea profile image52
      leebertteaposted 8 years agoin reply to this

      That's right! The rich should pay for the promises the government made to us.

      No there's nothing morally wrong with that. I know in the private sector that's called fruad and stealing and people go to jail for it, but when the government does it, it's justice. The logic of the left... sad really...

  5. Ohma profile image73
    Ohmaposted 8 years ago

    Here is the top that needs cutting
    Congress: Leadership Members' Salary (2010)
    Leaders of the House and Senate are paid a higher salary than rank-and-file members.

    Senate Leadership
    Majority Party Leader - $193,400
    Minority Party Leader - $193,400

    House Leadership
    Speaker of the House - $223,500
    Majority Leader - $193,400
    Minority Leader - $193,400

    1. leeberttea profile image52
      leebertteaposted 8 years agoin reply to this

      Yeah and that's just the tip of the iceberg. There's the books and speaking fees, and god knows what they make on insider information, favors and connections, and then of course they transition into lobbying where they make millions while they collect their public pensions and free health care for life!

  6. pylos26 profile image77
    pylos26posted 8 years ago

    Yo Cag...interesting article.

  7. lovemychris profile image68
    lovemychrisposted 8 years ago

    Police and firemen in my town are not that far behind.
    Police chief makes $120,000. Most officers make over $90,000.
    Same with Fire....$100,000 and up.

    School superintendent $95,000. On and on and on.
    We have millionaires still collecting social security even though their input has long been spent.
    Story about seniors in Florida who make an occupation out of going from specialist to specialist...all on tax-payer dime....
    Military is HUGE..even Pentagon said STOP!

    Bush's tax cuts....people STILL want them protected!
    7 MILLION a DAY to Israel. NOT including weapons.

    Everyone wants to cut, no one wants to be cut. Same old story.

    Just for comparison, we all went without a raise for 6 years at my job....taking it for the good of the business!! We need to do for the good of our country...PERIOD!


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