Someone sent me this article the other day from Market Watch about the looming recession. I realize the article is several months old, but it had some interesting points to make. However there was one point that I found hilarious. Here is a link to the article… 17 reasons America needs a Recession by Paul B. Farrell.
The one that I find hilarious is number four.
Budgeting
Force fiscal restraint back into government. America has been living way beyond its means for years: A recession will cut back revenues at all levels of government and cutbacks will encourage balanced budgeting.
Are you kidding me? Do you think for one minute, when the economy takes a dive the government will decrease spending? Our government, on no levels, has any concept of a reduction of spending. If their revenues decrease they simply raise taxes. They add fees or increase rates. The thought of decreasing spending is anathema to any government body.
In Charlotte, NC, the City's Water and Sewer department saw a decrease in revenue during a drought. They had implemented mandatory conservation of water, therefore less revenue. Do you think they decreased spending? NO! They went to the city council and asked for rate increase of 16% but only got 15%. Who would like to lay odds that they do not decrease the rate by 15% in June 2009? I would be willing to bet a month's water bill on it.
The cold hard fact is that short of a total economic collapse or revolution, our governments will never seriously decrease spending. Face it, we have moved into socialism with both parties steering us there. So Mr. Farrell keep dreaming, because recession or not our government will not decrease spending.
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