Friday, November 26, 2010

Cutting the Cost of Goverment

We have arrived at the crazy situation where Government workers at all levels get paid twice as much as their counterparts in private industry - as verified by the recent report by the Brookings Institute.

They used to be public servants - now they are our masters - we work to serve them.

Everyone wants a Goverment job - and who can blame them - get paid twice as much as everyone else and retire on full pay after 20 to 25 years years of service.

But, if no one is making the money, who is going to pay our Government employees.

When I was at university, I read a book that expressed a concern about what we would do with all the people who do not do constructive work as there are fewer and fewer people needed in Manufacturing, Mining and Agriculture. Now I know the answer, we call them Government employees - and they are increasing in number at an exponential rate.

So where does this lead: well in the case of Rome, it led to ruinous levels of taxation as fewer and fewer people were taxed to support an ever increasing number of Govermenet employees.

There is a theory that Rome fell to the Visigoths not because of the military prowess of their armies but simply because they offered lower tax rates to their citizens than the Roman emporers. So no one wanted to defend the Empire and so it fell.

So, the question arizes, how do we solve the problem in the USA. The answer is simple. Stop cost of living rises for Government workers. Freeze their pay in place and, as the dollar devalues (which it is doing rapidly due to the ever increasing national debt) the wages of Government workers will come in line with those of ordinary workers.

Unfortunately the Government workers unions have become so powerful that this may not be possible and could lead to a civil war between the "Federales" and the ordinary people of the USA. It has happened in other countries and empires throughout history and could happen here if the Government workers and politicians continue to take an ever increasing share of the USA's wealth.

I am reminded of Marie Antoinette's "Let them eat cake" statement when listening to the pronoucement by the leaders of the Government unions that they need ever increasing wages and benefits if they are to serve the American people "better".

So, can we solve this problem? Well again Government incompetency may come to the rescue. With the current bunch of neer-do-wells we have in Government, I expect that we will quickly have complete deadlock in Washington with the inability to pass any legislation at all. This will lead to a complete shutdown of Goverment because there will be no money appropriated and a good thing too!

I am sure that we will have rioting in the streets by all the Government workers - just like in France and Greece. But, if we don't pay them any money, maybe- just maybe - they will eventually fade away and get a real job - if there is one to be had for someone who is used to not working too hard and taking long vacations and holidays.

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