Cut, cap and tax

The House passed this bill last night. The current conventional wisdom is that it has no chance in the Senate, and that Obummer would veto it if it ever did manage to get to his desk.

Here’s the plan in Reader’s Digest form.

1. Cut discretionary spending by $111 billion next year.
2. Cap future spending to a specific percentage of the Gross Domestic Product. The average since World War II has been around 18%. Obama is pushing that toward the 25% mark.
3. Submit a balanced budget amendment to the states for ratisfaction.

Here’s an interesting aspect of the CCB plan. The debt ceiling would only be raised if a balanced budget amendment is submitted to the states …and that amendment must contain a provision that congress could not increase taxes without a two-thirds vote of the congress. Several states have such a provision … and if you look at the budgetary health of these states you will see that they have pretty much dealt with this recession more smoothly than the states without these supermajority laws.

The question right now is where do we go with the CCB plan? Here is something that has at least passed a house of congress. Do they drive this into the Senate chamber and make it a take it or leave it deal? Is the Republican thinking that they can pin the blame on the Democrat controlled Senate and Obama if they refuse to consider this plan and the debt ceiling is not increased? Risky business here. Remember — the media will almost certainly be on the side of the Democrats and Obama. That’s just the way things are … and it isn’t going to change.

Boring, isn’t it? Well … your children won’t think it’s so boring when they figure out that they have no real chance of improving their standard of living because of decades of neglect by both parties in Washington.

A telling stat about government workers

You want to understand why government is so darn inefficient? This stat should explain it all … a USA Today analysis has found that federal government workers are more likely to die than get laid off or fired. USA Today says, “Death — rather than poor performance, misconduct or layoffs — is the primary threat to job security at the Environmental Protection Agency, the Small Business Administration, the Department of Housing and Urban Development, the Office of Management and Budget and a dozen other federal operations.” When it comes down to it, 0.55% of government hacks were fired last year for poor performance in the workplace. Their job security is so solid, that there is almost nothing they can do to get fired. So what’s the incentive for them to do well? There is none. Imagine how much better off we would be if more government services were privatized. Make people accountable for their performance and it is amazing how they will suddenly work a little bit harder. If they don’t, there is always someone else there who IS willing to work harder and do better .. so long as there is incentive to do so.