Mark Gibson Wrote:
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> Nothing More Than a Middleman?
> Posted on March 26, 2012 at 3:27 pm
>
http://fairfaxcity.patch.com/blog_posts/nothing-mo
> re-than-a-middleman
>
> Mark Gibson is the independent candidate in
> Virginia's 11th Congressional District.
>
> In a recent op-ed piece, columnist Robert
> Samuelson cites the President's Office of
> Management and Budget:
>
> From 1960 to 2010, the share of federal spending
> going for “payments to individuals” (Social
> Security, food stamps, Medicare and the like)
> climbed from 26 percent to 66 percent. (see below
> for full article)
>
> So instead of building infrastructure and
> providing services that help us grow, the federal
> government acts as middleman with no value added
> – taking from taxpayers and incurring debt to
> give to beneficiaries. As Samuelson says, "No one
> wants to take away; it’s more fun to give."
>
> Mind you, some middlemen can add value by
> providing an avenue for distribution from
> producers to consumers. However, the federal
> government's middleman role takes money from
> workers (taxes) and their children (debt), giving
> to those that aren't working – whether they're
> unemployed or no longer employed.
>
> My father-in-law is a case in point. A prudent
> hardworking man, he grew up poor and put himself
> through college to become an engineer, retiring in
> his early 60s. Now in his early 70s and a Medicare
> beneficiary, he lives a comfortable and active
> retirement. But as a prudent man, he knows that
> his financial situation allows him to contribute
> more to his own healthcare than Medicare asks of
> him.
>
> Compassion is a trait of an affluent society, but
> prudence seems to have taken a back seat to
> immediacy. English philosopher John Milton said,
> "Prudence is the virtue by which we discern what
> is proper to do under various circumstances in
> time and place."
>
> Now is the time for virtue – for our children's
> sake.
>
> ~~~~~~~~~~~~~~~~~~
> Robert J. Samuelson
> Opinion Writer A country in denial about its
> fiscal future
> By Robert J. Samuelson, Published: December 25
> The Washington Post
>
http://www.washingtonpost.com/opinions/a-country-i
> n-denial-about-its-fiscal-future/2011/12/23/gIQACL
> jpHP_story.html
>
> There are moments when our political system, whose
> essential job is to mediate conflicts in broadly
> acceptable and desirable ways, is simply not up to
> the task. It fails. This may be one of those
> moments. What we learned in 2011 is that the
> frustrating and confusing budget debate may never
> reach a workable conclusion. It may continue
> indefinitely until it’s abruptly ended by a
> severe economic or financial crisis that wrenches
> control from elected leaders.
>
> We are shifting from “giveaway politics” to
> “takeaway politics.” Since World War II,
> presidents and Congresses have been in the
> enviable position of distributing more benefits to
> more people without requiring ever-steeper taxes.
> Now this governing formula no longer works, and
> politicians face the opposite: taking away —
> reducing benefits or raising taxes significantly
> — to prevent government deficits from
> destabilizing the economy. It is not clear that
> either Democrats or Republicans can navigate the
> change.
>
> Our political system has failed before. Conflicts
> that could not be resolved through debate,
> compromise and legislation were settled in more
> primitive and violent ways. The Civil War was the
> greatest and most tragic failure; leaders
> couldn’t end slavery peacefully. In our time,
> the social protests and disorders of the 1960s —
> the civil rights and antiwar movements and urban
> riots — almost overwhelmed the political
> process. So did double-digit inflation, peaking at
> 13 percent in 1979 and 1980, which for years
> defied efforts to control it.
>
> The budget impasse raises comparable questions.
> Can we resolve it before some ill-defined crisis
> imposes its own terms? For years, there has been a
> “something for nothing” aspect to our
> politics. More people became dependent on
> government. From 1960 to 2010, the share of
> federal spending going for “payments to
> individuals” (Social Security, food stamps,
> Medicare and the like) climbed from 26 percent to
> 66 percent. Meanwhile, the tax burden barely
> budged. In 1960, federal taxes were 17.8 percent
> of national income (gross domestic product). In
> 2007, they were 18.5 percent of GDP.
>
> This good fortune reflected falling military
> spending — from 52 percent of federal outlays in
> 1960 to 20 percent today — and solid economic
> growth that produced ample tax revenue. Generally
> modest budget deficits bridged any gap. But now
> this favorable arithmetic has collapsed under the
> weight of slower economic growth (even after a
> recovery from the recession), an aging population
> (increasing the number of recipients) and high
> health costs (already 26 percent of federal
> spending). Present and prospective deficits are
> gargantuan.
>
> The trouble is that, while the economics of
> giveaway policies have changed, the politics
> haven’t. Liberals still want more spending,
> conservatives more tax cuts. (Although the tax
> burden has stayed steady, various “cuts” have
> offset projected increases and shifted the
> burden.) With a few exceptions, Democrats and
> Republicans haven’t embraced detailed takeaway
> policies to reconcile Americans’ appetite for
> government benefits with their distaste for taxes.
> President Obama has provided no leadership. Aside
> from Rep. Paul Ryan (Wis.), chairman of the House
> Budget Committee, few Republicans have.
>
> No one wants to take away; it’s more fun to
> give. All of 2011’s budget feuds — over the
> debt ceiling, the supercommittee, the payroll tax
> cut — skirted the central issues. There’s a
> legitimate debate about how fast deficits should
> be reduced to avoid jeopardizing the economic
> recovery, notes Charles Blahous, a White House
> official in George W. Bush’s administration. But
> the long-term budget problem, as he says, stems
> from Social Security, Medicare and other health
> programs.
>
> Any resolution of the budget impasse must
> repudiate, at least partially, the past
> half-century’s politics. Conservatives look at
> the required tax increases and say, “No way.”
> Liberals look at the required benefit cuts and
> say, “No way.”
>
> Each reverts to scripted evasions. Liberals imply
> (wrongly) that taxing the rich will solve the
> long-term budget problem. It won’t. For example,
> the Forbes 400 richest Americans have a collective
> wealth of $1.5 trillion. If the government simply
> confiscated everything they own, and turned them
> into paupers, it would barely cover the one-time
> 2011 deficit of $1.3 trillion. Conservatives
> deplore “spending” in the abstract, ignoring
> the popularity of much spending, especially Social
> Security and Medicare.
>
> So the political system is failing. It’s stuck
> in the past. It can’t make desirable choices
> about the future. It can’t resolve deep
> conflicts.
>
> An alternative theory is that we’re muddling our
> way to a messy consensus. All the studies and
> failed negotiations lay the groundwork for
> ultimate accommodation. Perhaps. But it’s just
> as likely that this year’s partisan scapegoating
> implies more partisan scapegoating. Political
> leaders assume that financial markets won’t ever
> choke on U.S. debt and force higher interest
> rates, stiff spending cuts and tax increases.
>
> At best, this is wishful thinking. At worst,
> it’s playing Russian roulette with the
> country’s future.
tl;dr