For those of you who’ve bought into the idea that the government is coming to your rescue, you might be interested in this. It’s not. And, while we’re at it, we need to stop calling it a bailout.
The US government has not directly provided any money to the people of Louisville. It has, however, given up $3 million to help finance a proposed bond issue in Kentucky. The money will help fund a new, higher level of local government that will be created for the area. This is actually a good development for Louisville. I’m a huge proponent of local government being able to exist in the form of a locally elected body.
The only problem is that the government has already spent an awful lot of money to do this in the first place. The question is how much more money the government will have to spend to do this again. Louisville’s local government has been struggling with a number of issues in the past few years, including a long-term budget crisis and an ongoing deficit of between $100 million and $200 million per year. The city does not have the financial resources to deal with an immediate crisis of this magnitude.
If the federal government isn’t going to do it, they will do it themselves. The federal government has already spent $25 billion on the Iraq War, almost all of which came from taxes. The US government is currently sitting on a budget surplus of $1.5 billion, but that could change if a certain bill is passed.
If you were to compare the spending on the Iraq War to the US government’s spending on the deficit, you’d be hard pressed to find any of the spending being used for anything other than the war. To wit, just about every single dollar that the federal government spends on the Iraq War comes from the US taxes. For this reason, unless you are a government employee, you should not expect the federal government to fix the budget shortfall.
Congress is spending millions in the name of a bill that is, in reality, still under discussion. The budget is still a mystery to most, including some of the politicians who voted for it.
Although Congress is spending our taxes, it is spending trillions that are not for the war and the budget deficit. The president could have easily signed a bill into law that gives the president the power to cut our entire government back to $500 billion. Instead the president has spent the money through the regular budget process, rather than the “emergency” budget process. This is an interesting twist on the usual relationship between elected officials and the public.
Just because it’s a joke doesn’t mean it’s a good idea. Some of the other stories in this series are hilarious.
If anything, I have had a few moments where I have a hard time believing that the president has the power to cut our government back to 500 billion. The reality is that the budget deficit is so large that it’s hard to imagine that they would pay more in taxes. And it’s not even the president that is going to be able to make a more impact on the budget.
This is a perfect example of why republic finance is so bad. The problem is that the people that are supposed to represent citizens in congress are not the ones that represent them. The fact is that congress just dont care. They have to be paid for by the public, and it doesnt really matter if they are paid for by everyone in congress or by someone else. The people that they are supposed to represent are just not part of their constituency. They are not part of the public.