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Steve McIntosh Report Blog Archive

What 'drives' government spending?

Kansas Governor Sam Brownback appeared on Fox News this week, commenting on the labor strife in Wisconsin’s state government. Brownback faces revenue shortfalls and budget cuts, but not on the scale of many other states, including Wisconsin’s projected three-and-a-half billion-dollar shortfall next year.
Are public employee labor unions to blame for these state budget deficits? Brownback believes that may be at least part of the problem. He told Fox News he would like to see a “discussion and debate” at all levels of government “for several years” because government “structurally” spends too much money. Brownback wants to look at what really “drives” the cost of government.
Surely a factor that “drives” the cost of government is the same as what “drives” the cost of business: employees. Somebody has to do the work. The question is, do we have too many government employees paid unreasonable wages and benefits?
But we cannot leave out the biggest factor that “drives” government spending; the public’s demand for government services.
Our thought for today is from Harry S. Truman:
“Whenever you have an efficient government you have a dictatorship.”

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Topics : Business_FinanceLaborPolitics
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Locations : KansasWisconsin
People : Harry S. TrumanSam Brownback

03/03/2011 1:20AM
What 'drives' government spending?
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