Government Octopus Threatens Economy

DEAD7

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January 14, 2019 2:15PM
Government Octopus Threatens Economy
Government Octopus Threatens Economy

As the government shutdown drags on, it is starting to damage activities across the economy because federal tentacles are in everything. But we better get used to it because with rising deficits and growing partisan discord such disruptions will probably become more frequent and damaging.

Sadly, the expansion and centralization of government power in recent decades has made our $20 trillion economy dependent on a small group of self-interested and often ill-informed politicians. Centralization and dysfunction at the core is a toxic mix.

The shutdown is affecting activities that the government needlessly monopolizes—such as air traffic control. It is affecting activities that the government needlessly regulates and subsidizes—from Smuttynose’s beer labels in New Hampshire to Betty Gay’s home repairs in Kentucky.

And it is needlessly harming a large group of people that it has micromanaged for far too long—American Indians. “The shutdown has hit Native American tribes especially hard because so many of their basic services depend on federal funding,” notes the Washington Post. Education, health care, road maintenance, and other services on reservations are often run by the federal government or run by tribal employees paid by the federal government.

That dependency has long resulted in mismanaged and low-quality services for the million people who live on reservations. In the New York Times, one tribal leader spoke of federal support, “The federal government owes us this: We prepaid with millions of acres of land,” while another said the shutdown “adversely affects a population that is already adversely affected by the United States government.”

I agree with those views. In the long run, subsidies are not a good way to generate prosperity, but they are needed until Congress tackles basic problems of property rights and legal institutions on reservations that stymie growth.

In the meantime, funding should be converted to block grants to the tribes or vouchers to individuals on reservations. Tribes and individuals would use the benefits to contract for services such as schooling and health care from private firms or nearby local governments. That would further the goal of Indian self-determination and ensure that reservation life doesn’t get caught in the political crossfire.
 

the cac mamba

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how dare you suggest that the federal government is bloated and out of control :jayfdup: what are you, a rational human being with two eyes?
 

¯\_(ツ)_/¯

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how dare you suggest that the federal government is bloated and out of control :jayfdup: what are you, a rational human being with two eyes?

Because the government regulates industries and services like taxes, flight security and safety, food, and the environment that makes it bloated?

Are you serious?

Wake me up when the federal government causes a global recession because one industry failed. Then you can talk about bloated.
 

the cac mamba

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Because the government regulates industries and services like taxes, flight security and safety, food, and the environment that makes it bloated?

Are you serious?

Wake me up when the federal government causes a global recession because one industry failed. Then you can talk about bloated.
sure. should be right around the time that the 21 trillion dollar debt that the government ran up, collapses and utterly destroys everything :ehh:
 

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sure. should be right around the time that the 21 trillion dollar debt that the government ran up, collapses and utterly destroys everything :ehh:

Yeah, "the government" ran up that debt, as if damn near the entire thing didn't come during the Reagan administration (military spending and tax cuts), George W. Bush (military spending, tax cuts, and crony giveaways to big business), and the aftermath of the industry-caused recession. And now Trump is shooting for record deficits off the strength of tax cuts and military spending alone.

"Bloated government" has little to do with the debt. We easily have far more than enough tax revenue in this country to run the current government programs and then some. The ONLY reason we're in debt like this is because we keep a hugely bloated military, keep getting into wars, and keep having Republicans cut taxes. Take out those three issues and we wouldn't have any debt at all.
 

the cac mamba

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Yeah, "the government" ran up that debt, as if damn near the entire thing didn't come during the Reagan administration (military spending and tax cuts), George W. Bush (military spending, tax cuts, and crony giveaways to big business), and the aftermath of the industry-caused recession. And now Trump is shooting for record deficits off the strength of tax cuts and military spending alone.

"Bloated government" has little to do with the debt. We easily have far more than enough tax revenue in this country to run the current government programs and then some. The ONLY reason we're in debt like this is because we keep a hugely bloated military, keep getting into wars, and keep having Republicans cut taxes. Take out those three issues and we wouldn't have any debt at all.
that's fukking bullshyt :camby: all the cities and states that operate in the same way, what's their excuse? they arent at war
 

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sure. should be right around the time that the 21 trillion dollar debt that the government ran up, collapses and utterly destroys everything :ehh:

If the industries and services impacted by the shutdown are proof of a "bloated government" then how specifically limited should the federal government be regarding regulations and the services we use to avoid these?
 

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that's fukking bullshyt :camby: all the cities and states that operate in the same way, what's their excuse? they arent at war

There are states that are $20 trillion in debt? :ohhh:

And you said that knowing the history of our deficit is "bullshyt". :mjlol:

The debt in 1981, when Reagan took over, was less than a trillion dollars. The annual deficit in Carter's last year was only 2.4% of the GDP.

When "small government Reagan" took office and cut taxes, drove up military spending to compete with the Soviets, and purposely started a recession to combat inflation, the annual deficit more than doubled to 5.6% of the GDP. It dropped after that but never got as low as it had been when Reagan took office.

When "small government Reagan" left, the debt had tripled to almost $3 trillion.


Bush did little better - spent a ton in the invasion of Iraq and had another recession. By his last year the deficit was back up to 4.4% of the GDP.

When "small government Bush" left, the debt was at $4.4 trillion.


Clinton came to office, signed the Balanced Budget Act, raised taxes, cut military spending. Deficits dropped immediately, and by 1998-2000 there was a surplus.

When "big government Clinton" left, the debt was at $5.6 trillion and dropping. He'd added less in 8 years than Bush had added in 4, and most of what he added was leftover from Bush budgets.


W. came to office, another recession, "War on Terror", huge tax cuts, and Medicare Part D as a windfall for the pharmacuetical industry.We went from a surplus to shooting back up to deficits at 3.4%, dropped down for a couple years and then pulled back up in his last year to 3.1%.

"Small government" W incredibly managed to had pushed the debt up to $12 trillion


Then the economy collapsed. Tax receipts went down to nothing, Obama's first act coming in was an especially expensive stimulus package and tax cuts. Deficit in Obama's first year was 9.8% of the budget. it dropped every year until hitting a low of 2.4% in 2015, before rising to 3.1% in 2016.

"Big government" Obama had the debt up to $19 trillion, but again it was majority inherited recession, interest on the already-existing debt, and Bush's budget increases.


Trump took over, increased military spending and passed a huge tax package. Deficit has already climbed to 3.8% and is expected to climb further as the economy slows with tax breaks still in effect.


Tax breaks, military spending, and recessions have driven all of our budget deficit problems.
 

the cac mamba

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There are states that are $20 trillion in debt? :ohhh:

And you said that knowing the history of our deficit is "bullshyt". :mjlol:

The debt in 1981, when Reagan took over, was less than a trillion dollars. The annual deficit in Carter's last year was only 2.4% of the GDP.

When "small government Reagan" took office and cut taxes, drove up military spending to compete with the Soviets, and purposely started a recession to combat inflation, the annual deficit more than doubled to 5.6% of the GDP. It dropped after that but never got as low as it had been when Reagan took office.

When "small government Reagan" left, the debt had tripled to almost $3 trillion.


Bush did little better - spent a ton in the invasion of Iraq and had another recession. By his last year the deficit was back up to 4.4% of the GDP.

When "small government Bush" left, the debt was at $4.4 trillion.


Clinton came to office, signed the Balanced Budget Act, raised taxes, cut military spending. Deficits dropped immediately, and by 1998-2000 there was a surplus.

When "big government Clinton" left, the debt was at $5.6 trillion and dropping. He'd added less in 8 years than Bush had added in 4, and most of what he added was leftover from Bush budgets.


W. came to office, another recession, "War on Terror", huge tax cuts, and Medicare Part D as a windfall for the pharmacuetical industry.We went from a surplus to shooting back up to deficits at 3.4%, dropped down for a couple years and then pulled back up in his last year to 3.1%.

"Small government" W incredibly managed to had pushed the debt up to $12 trillion


Then the economy collapsed. Tax receipts went down to nothing, Obama's first act coming in was an especially expensive stimulus package and tax cuts. Deficit in Obama's first year was 9.8% of the budget. it dropped every year until hitting a low of 2.4% in 2015, before rising to 3.1% in 2016.

"Big government" Obama had the debt up to $19 trillion, but again it was majority inherited recession, interest on the already-existing debt, and Bush's budget increases.


Trump took over, increased military spending and passed a huge tax package. Deficit has already climbed to 3.8% and is expected to climb further as the economy slows with tax breaks still in effect.


Tax breaks, military spending, and recessions have driven all of our budget deficit problems.
:dead: at the democrats being completely non-complicit in those years it went up. that's too convenient
 

Secure Da Bag

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And it is needlessly harming a large group of people that it has micromanaged for far too long—American Indians. “The shutdown has hit Native American tribes especially hard because so many of their basic services depend on federal funding,” notes the Washington Post. Education, health care, road maintenance, and other services on reservations are often run by the federal government or run by tribal employees paid by the federal government.

That dependency has long resulted in mismanaged and low-quality services for the million people who live on reservations. In the New York Times, one tribal leader spoke of federal support, “The federal government owes us this: We prepaid with millions of acres of land,” while another said the shutdown “adversely affects a population that is already adversely affected by the United States government.”

I agree with those views. In the long run, subsidies are not a good way to generate prosperity, but they are needed until Congress tackles basic problems of property rights and legal institutions on reservations that stymie growth.

In the meantime, funding should be converted to block grants to the tribes or vouchers to individuals on reservations. Tribes and individuals would use the benefits to contract for services such as schooling and health care from private firms or nearby local governments. That would further the goal of Indian self-determination and ensure that reservation life doesn’t get caught in the political crossfire.

This guy isn't slick. He's saying two things:
  • He doesn't like the fact that Native Americans get reparations.
  • He doesn't like the fact that he and other private entities can't get to that money.
The rest of that article is a distraction.
 
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