POLITICIANS

I was a “civil servant” for many years and as such had many contacts with politicians at local, state and federal level. The more I saw and knew the more I believed the old saying;

“How do you know when a politician is lying?
When their lips are moving.”

In my community we had a councilman that was “for the people.”   The administration proposed building a new community center. The councilman rallied against the proposal accusing the administration of graft, corruption, fiscal irresponsibility , and stating on record that the final cost would be at least twice the proposed budget.   Moreover, the center would be underutilized and not needed.

Well, the center was approved with the councilman voting against it. Later, the councilman was elected mayor. As mayor he took credit for building the center which is extremely popular and built under budget.

I watch the political ads on TV. I am amazed at the absurdity of the ads. Aside from the fact that two opponents have diametrically opposite “facts” on their and the others record, they often promise to change things that they have no control over.  At the start of the recession the Democrats blamed the Republican president for the problems in Michigan. The Republicans blamed the Democratic governor. Now the Republican ads credit the Republican governor for growing prosperity in Michigan and claim the Democratic president is hindering further growth. The Democrats claim vice-versa. Our governor takes credit for a surplus in funds.   Of course he avoids the fact that pensions are now taxable and that we have a stronger economy.

My tea party neighbor blames Obama for poor response by CDC to recent health alarms. He blames Obama for the computer glitches in rolling out Affordable Health Care Insurance.  I thought that the spending cut backs and privatization cut CDC funding significantly and that the Fed in order to attain “fiscal responsibility planned to

Cut workforce by 10 % by 2015 (through attrition); freeze pay for civilian employees through 2015. Management projects that about 400,000 federal employees are currently eligible for retirement. 1

Now this is when others claim the greatest threat to America is from cyber hackers in China, Russia, etc.

A hypothetical: laying off a $100,000/yr federal employee saves $100,000 according to some politicians. Aside from drawing unemployment compensation, that employee probably pays $25,000 in Federal taxes. In Michigan they pay another 7% state tax. Then he probably spends a lot of the remainder on housing, food, cars gas etc. that is subject to 6% sales tax. So we really did not save $100,000. But with large cutbacks we increase competition that lowers wages, slows down spending that in turn slows down business growth, etc.

Republicans are ranting over a $400 billion deficit last year (approx. 2-1/2% of GDP) that is the lowest in 40 years. Note Congress flipped their wigs when the first deficit was $80,000. centuries ago.

Many believe the budget controls spending. A budget is a plan. You can budget $100.00 for groceries but if you paycheck bounces and you are overdrawn at the bank, the grocer will not give you groceries based on your budget, well at least most won’t. Conversely if you car breaks down and you can’t get to work without it, you might repair the car even though it was not in your budget. What the government pays out is controlled by the Appropriations committee.

WARS are not budgeted! When we send troops abroad, we stimulate local economies. We buy their fresh fruits and vegetables, dine off base in their restaurants, shop at their boutiques, hire local labor. This money is transferred from us to them. On the other hand spent domestically, we improve our infrastructure, hire local labor that pays taxes and reduces unemployment drain. Better roads reduces cost to transport goods and holds prices down. Better water and sewer mains means less repairs to the sewers and streets or highways over them. Health concerns regarding clean water are mitigated by infrastructure improvements.

Enough Ranting and Raving for the moment.

 

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