Tuesday, October 30, 2012

Spending???



Conservatives are always claiming the cause of the deficit is government spending.  However, when legislation is written to cut defense spending, conservatives are the first to claim the need for defense spending.  On the other hand, when it comes to spending for infrastructure, education, and public safety, conservatives vote against these expenditures every time.  What is the reason for this discrepancy in philosophy?  Are defense contractors bigger contributors to political campaigns than bridge and road builders?  In reality, most government spending actually goes to pay the wages of those providing the products or services the government is purchasing.  And, like all other wages, salary and wages of workers providing products and services for the government are taxed the same as workers providing goods and services to the private sector.  With this in mind, out of every dollar spent on wages for government expenditures, the government actually gets back approximately twenty cents in tax revenue.  Thus, government expenditures actually only cost taxpayers eighty cents for each dollar spent.  One other fact the conservatives would like to keep hidden.  That fact is that is does not matter whether government cuts spending for defense or for any other program.  Cuts in government spending for anything will likely result in a loss of jobs.  The government creates demand just like the private sector and those providing products and services to the government are dependent upon that demand to keep up employment levels.  When demand drops, the need for employees diminishes and instead of hiring, employers are laying off or firing.  So, why do conservatives continually demand tax revenues be spent for defense and not for other programs?  Both will result in hiring when expenditures increase and firings when expenditures decrease.  The revenue from taxes on wages are no different if the wages goes to someone making bullets or someone repairing a bridge.  One has to wonder where conservatives get their views of the world.

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