Why a Shrinking Government Is Bad News

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Non-productive workers, superior benefits and pensions for contributing little. $800,000 boondoggles like the GSA training in Las Vegas. Bridges to nowhere. Sure, that's exactly what we need - more government.

bc3b of MI 4:29PM May 05, 2012

When gov't at all levels approaches 40% of GDP, as it is now, the remaining 60% have to produce enough for everyone to survive and more than enough for the people to prosper. We are running an economy @ 60% efficiency with goverment controlling, regulating, directing and restraining that 60%. In 1900 gov't at all levels made up 3% of GDP (GNP). Somehow we more than survived, we grew wealthy. The more prosperity and wealth creation, the higher standard of living. We are supporting our standard of living by obscene amounts of national debt that is nothing more than delayed taxes that will support our present government. Gov't has to limited if we are not to economically self-destruct.

oraclepundit of PA 4:22PM May 05, 2012

How are we getting our wish for a smaller government? Our federal budget goes up every year! I just watched a piece on people getting free cell phones - some getting 20 or 30 phones for free...paid for by us. So the whole premise of this BS story is crap.

I just love the Obama adoring media...the guy spends, spends and spends...yet we have this kind of crap story talking about shrinking government. Puke on you.

iman of PA 4:09PM May 05, 2012

lovely attempt at propaganda for more and more government. Add up the benefits and perks for each government employee and the costs soar even higher. Cutting beauracracy encourages private enterprise. Privatization is almost always an economic boon for taxpayers and employees. Prisons and the TVA are two prime examples of agencies that could and should be privatized.

"By privatizing prisons the federal government saves millions of dollars per prison while improving safety conditions for both the prisoners and guards. The Corrections Corporation of America (CCA) has turned prison privatization, once a misunderstood and maligned concept, into a program that offers cost-effective and humane incarceration. Studies indicate that CCA has saved taxpayers 10 to 15 percent on incarceration costs.

TVA is a multibillion-dollar utility run by the federal government. TVA's non-power duties include recreational programs, the promotion of public use of federal land and water resources, and the operation of a national fertilizer research center. Congress appropriates nearly $140 million annually for these non-power duties. Critics of TVA contend that the remaining functions of TVA could best be handled by the private sector or consolidated with the research functions of the Department of Agriculture.

Other areas ready immediately for privatization include:

•Power Marketing Administrations

•Air Traffic Control

•Naval Petroleum Reserves

•Strategic Petroleum Reserves

•United States Postal Service "

-source: Citizens against public waste

kjaser of CT 3:56PM May 05, 2012

So, let's never shrink government, because it will be too much pain. Think that an obese government and an unsustainable debt cause much pain?

Stormy of NM 3:55PM May 05, 2012

Sure, it's bad news, in the same way that when an overspending family tightens the reins on their budget it's bad news for the local Starbucks.

Southern Man of AK 3:42PM May 05, 2012

Businesses would be better able to pick up the slack, if the Federal government started viewing the private sector as something to encourage, rather than as a source of revenue for social programs and a target for overly-strict environmental regulations and strongly pro-union policies.

TC of CO 3:41PM May 05, 2012

More propaganda. Nothing new here. More left wing propaganda press being revealed everyday.

Mike of CA 3:35PM May 05, 2012

Just a loser-liberal (redundant as liberals are losers) using propaganda seeking to maintain his welfare.

Carla Hernandez of CA 3:32PM May 05, 2012

This author is missing the point--while the federal government workforce is far too large, the fact that it has only grown 2.3% isn't what has created the current problem--its that the costs of the existing workforce, --in pay and benefits-- has exploded! Those working for the government have seen the total money spend on them go through the roof under Obama. This author obfuscates the issue--likely deliberately-- by claiming the workforce numbers haven't grown. THE COST OF THAT WORKFORCE HAS EXPLODED.

And I don't buy the idea that there is much damage to the local economy by slashing government spending--that spending by default doesn't create real value-- regulatory oversight in and of itself is a drain on the productivity of the private sector, so by eliminating the waste of it, we're killing two birds with one stone--removing shackles off the private economy, and redirecting funds back into the private sector that would other wise be wasted on useless bureaucrats getting fat gold-plated pensions for ridiculous work at tax payer expense.

Aaron P 3:28PM May 05, 2012

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Rick Newman

The global economy is mysterious, even scary. Chief Business Correspondent Rick Newman demystifies it and explains what matters to you. Rick is the author of Rebounders: How Winners Pivot from Setback to Success and the co-author of two other books: Firefight: Inside the Battle to Save the Pentagon on 9/11, and Bury Us Upside Down: The Misty Pilots and the Secret Battle for the Ho Chi Minh Trail.

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