Government is Running on Empty

Current events highlighted by protests in Wisconsin and the budget debates in our nation’s Capitol and our State Capitol are shaking the roots of the socialist welfare state that has become America.

Government is being confronted by those, both individuals and programs that receive government money and the fact that government revenue is not growing as fast as expenditures. Further Citizens are coming to the realization that the overload of debt is causing many problems and has become near unmanageable.

The brutal fact is government does not have enough money. Those (again both individuals and programs) must come to grips (reality) with this. Whether it is government employees, teachers (K-12 and University), Lewis & Clark pipeline, Social Security recipients, Essential Air Service, Farm Programs, the Money Isn’t There.

We can have lots of protests but they won’t change the fact that entitlements and programs are growing faster than receipts. BTW protests are the American way but they won’t solve the revenue problem.

Government can raise revenues (taxes) but generally that is counter productive to growth. And just spending money, i.e. the Stimulus Bill didn’t work to foster economic growth. Once (and if) calmer and saner heads prevail, there might be agreement to raising taxes but not without deep and real spending cuts and real entitlement reform. Neither political Party has shown the stomach for entitlement reform (Social Security, Medicare, and Medicaid).

A word about Government Employment – Government Employees have Job Security. In today’s economic environment and the fast paced changes occurring in the economy and occupations that is HUGE! (Job Security). Government workers enjoy generally better benefit packages than those in the private sector. Government employees have health care benefits, vacation benefits, and pension benefits generally better than those in the private sector. In the New Normal of today where worker’s fear for the loss of their job, Job Security is paramount.

The ineffective Stimulus Bill and the so called Health Care Reform Law were the catalysts for the Tea Party. Deficit reduction and opposition to the President’s leadership on the economy were the cause of Republican victories last November. The entitled and the minions of Democrat elected officials will ignore this reality but these protests by the Government Class are going to awake the Sleeping Giant and the 2012 General Election for the GOP will be like an Atomic Bomb. The explosion will make the 2010 election seem like a popcorn fart.