Smart Government

Smart fiscal policy involves having the government spend when the private sector won’t, supporting the economy when it is weak and reducing debt only when it is strong  However, where is it written that Conservative policies are anywhere close to smart.  Conservative policies are aimed at one result.  That result is to enable the rich to get richer, corporations to make higher profits while increasingly lowering payrolls (for all but CEOs), and continuing to grow the gap between rich and poor. In order to most effectively do this, it requires Conservatives to do what they really want, namely dismantle Medicare, Medicaid and Social Security. This is the underlying goal of the Fix The Debt movement.  Those people whose careers are heavily invested in the deficit-scold industry don’t want to let evidence undermine their scare tactics and refuse acknowledge that under President Obama (as opposed to Bush 43) the deficit is actually shrinking.  The Fix The Debt crowd also fails to point out the fact that many pensions, other retirement programs, endowments, and other long-term investments are actually dependent upon a federal deficit.  Government bonds, the primary holders of the debt, are key to the aforementioned programs.  Until such time as employment is reduced it remains a responsibility of government to spend sufficiently to offset the cuts in spending on the part of the private sector.  When both labor costs are at historic lows along with costs of borrowing virtually at a zero interest rate, this is by far, the best time to increase government spending to put more people to work, expand the tax base, and raise the revenue that was lost by the recession and cuts in public sector jobs and spending by state and local governments.  Finally, because of low interest, available labor, and less demand resulting in lower prices for materials, this is the least expensive time to make needed repairs and improvements in the nation's infrastructure.  Smart government, not stupid conservatism.