The Financial Crisis continues to play out in Wisconsin and other Mid-Western States. The Standoff between Wisconsin Governor Scott Walker and the Teacher's Union continues with no End in Sight. In Ohio, Governor John Kasich is also preparing for Battle with the Public Sector Unions. Iowa and other States appear to be ready to follow suit in not too long a Time. In New Jersey, Governor Chris Christie has already implemented major Financial Changes and Reforms and now has his Hands full denying that he would consider a Presidential Bid. Governor Christie has not yet invoked the Statement made by General William Tecumseh Sherman well over a Century Ago, 'I will not accept if nominated and will not serve if elected,' but we shall see.
It must also be said that with non Higher Education Student Performance Levels in a Dismal State throughout the Nation (see, 'Universities' elsewhere in this Forum) Teacher Salaries and Benefits should come under Scrutiny. Many Surveys indicate that Public Sector Workers are not only paid better but also have infinitely better Job Security when compared to Private Sector Workers. This Fact corrupts the Standing of Public Sector Workers as 'Civil Servants,' i. e., performing out of Dedication rather than Financial Benefits and Gain.
However, the Argument that balancing State Budgets can be done simply by this, without imposing an additional Tax Burden on Higher Income Brackets or, indeed, as done by Governor Walker, cutting Higher Income Taxes, qualifies for what Two Decades earlier President George Herbert W. Bush described as 'Vodoo Economics.'
At the Federal Level, we see a Course not all that different. 'Tea Party-ers' and many Republicans in the House are clamoring for various Cuts, much of it directed at Federal 'Entitlement' Programs and, some, attempting to reduce waste. However, all this cutting, if combined with continued uncontrolled Expenditures in Afghanistan and Iraq is totally useless. The Federal Budget consists of 3 Major Line Items: Social Programs, Military Expenditures and Interest on the Federal Debt, which add up to about 90% of what the Federal Government spends. So, even if everything else were to be eliminated completely, which, realistically it cannot, that would only add up to 10%.
In this Context, the Republican Argument that the Federal Budget can be brought under control, with these enormous Burdens, while reducing Higher Income Personal Tax Levels is, again, nothing less than what President Bush described as 'Voodoo Economics.'
Where the Republican Counter Argument that cutting Higher Income Tax Brackets 'creates Jobs' has germinated from is, to this Writer, a Mystery. There is no Evidence to show that the Billions doled out to Banks and Financial Institutions, or the 'Quantitative Easing' Cash have created any significant Number of Jobs, actually, rather, the Contrary Argument seems to be more persuasive, that they have not. To use a Cliché, the Obscene Bonuses on Wall Street have not created any Jobs.
The Challenges to balancing the Federal Budget (and, by Implication, States need to follow a similar Course in their Affairs) are:
If the War in Afghanistan (or in Iraq, or anywhere else) is necessary, fund first, fight later. Do not do what President George W. Bush did, fight first and let somebody else worry about the Funding by kicking the Can forward.
If the Social Programs have merit, fund and do not divert Funds to other Expenditures, as it was done previously with Social Security.
To cover the Federal Debt Interest Payments, one of the largest Items in the Federal Budget, obtain Funding, not by increasing the Debt Ceiling and cutting Taxes which are Voodoo Economics at its most sublime, but by assuring a Progressive Level of Taxation which covers them and, at the same Time, pray and pray hard, that somehow Mr. Bernancke will be succesful in keeping the Interest Rates low because, if he fails doing that, the Interest Payment Portion of the Federal Budget would explode.
And the Fundamentals of Voodoo Economics would not apply, should that happen.
It must also be said that with non Higher Education Student Performance Levels in a Dismal State throughout the Nation (see, 'Universities' elsewhere in this Forum) Teacher Salaries and Benefits should come under Scrutiny. Many Surveys indicate that Public Sector Workers are not only paid better but also have infinitely better Job Security when compared to Private Sector Workers. This Fact corrupts the Standing of Public Sector Workers as 'Civil Servants,' i. e., performing out of Dedication rather than Financial Benefits and Gain.
However, the Argument that balancing State Budgets can be done simply by this, without imposing an additional Tax Burden on Higher Income Brackets or, indeed, as done by Governor Walker, cutting Higher Income Taxes, qualifies for what Two Decades earlier President George Herbert W. Bush described as 'Vodoo Economics.'
At the Federal Level, we see a Course not all that different. 'Tea Party-ers' and many Republicans in the House are clamoring for various Cuts, much of it directed at Federal 'Entitlement' Programs and, some, attempting to reduce waste. However, all this cutting, if combined with continued uncontrolled Expenditures in Afghanistan and Iraq is totally useless. The Federal Budget consists of 3 Major Line Items: Social Programs, Military Expenditures and Interest on the Federal Debt, which add up to about 90% of what the Federal Government spends. So, even if everything else were to be eliminated completely, which, realistically it cannot, that would only add up to 10%.
In this Context, the Republican Argument that the Federal Budget can be brought under control, with these enormous Burdens, while reducing Higher Income Personal Tax Levels is, again, nothing less than what President Bush described as 'Voodoo Economics.'
Where the Republican Counter Argument that cutting Higher Income Tax Brackets 'creates Jobs' has germinated from is, to this Writer, a Mystery. There is no Evidence to show that the Billions doled out to Banks and Financial Institutions, or the 'Quantitative Easing' Cash have created any significant Number of Jobs, actually, rather, the Contrary Argument seems to be more persuasive, that they have not. To use a Cliché, the Obscene Bonuses on Wall Street have not created any Jobs.
The Challenges to balancing the Federal Budget (and, by Implication, States need to follow a similar Course in their Affairs) are:
If the War in Afghanistan (or in Iraq, or anywhere else) is necessary, fund first, fight later. Do not do what President George W. Bush did, fight first and let somebody else worry about the Funding by kicking the Can forward.
If the Social Programs have merit, fund and do not divert Funds to other Expenditures, as it was done previously with Social Security.
To cover the Federal Debt Interest Payments, one of the largest Items in the Federal Budget, obtain Funding, not by increasing the Debt Ceiling and cutting Taxes which are Voodoo Economics at its most sublime, but by assuring a Progressive Level of Taxation which covers them and, at the same Time, pray and pray hard, that somehow Mr. Bernancke will be succesful in keeping the Interest Rates low because, if he fails doing that, the Interest Payment Portion of the Federal Budget would explode.
And the Fundamentals of Voodoo Economics would not apply, should that happen.
