"To Spend is to Tax"

Milton Friedman rather famously proclaimed that "to spend is to tax."  If the government is paying public sector employees -- regardless of where the government got the money -- then the fruit of workers' labor is being consumed by those who are doing the government's bidding.

Thus, even if someone "lent" the money to the government, the process of disbursing it -- spending -- taxes producers.  In other words, capping borrowing would bring immediate tax relief to the private sector.

It boggles my mind that Republicans could conceivably cave on the debt limit.  The party of limited government is actually worrying about, well, placing limits on government.  Even more unusual, they are attempting to sweeten the pot in order to get the left to accept additional government growth.  Just whose side are these Republicans on?

It's a bizarre premise.  The right should be looking forward to a government shutdown.  Especially if they are concerned about "taking the blame" for the disruption of government services.  The reality is that this is the easiest government cut Republicans will ever get to make.  All they have to do is draw the line in the sand, and all the hard choices fall on someone else. 

The real problem with reducing government has always been choosing which programs to keep, and choosing which sacred cows to slaughter.  But this time it's different.  This time, Obama has to make those choices.

It doesn't matter what Obama does.  If he cuts social programs and keeps the constitutional ones, then that's a choice he'll have to explain to the beneficiaries of those programs.  If he cuts constitutional government in order to save social programs, then he'll have to explain that choice instead.

The only challenge for Republicans is to stay on message: If Social Security Checks Stopped Coming It Would Only Be Because Obama Decided Not To Send Them.

 The bottom line is that there is more than enough funding to run the government at 2005 levels (plus some growth of entitlements).  We can fully fund Social Security and Medicare, and even make military payrolls.  But we do have to cut $100 billion a month in unfunded spending.  American Thinker shows what this would really look like, done right.

The question is whether Obama wants to do it right, or whether he wants to try blaming his worst possible choice on Republicans. From RedState: The President Declares He Will Shoot His Hostages.

 From Doug Powers, writing at michellemalkin.com:

Hopefully Social Security recipients are familiar with chess, because they’re now officially pawns in the president’s debt ceiling game.

Sorry, but this President's decision-making has not impressed me.  He's not "shrewd" -- he's somewhere between evil and incompetent.  Let Obama demonstrate the choices he would make when forced to choose, and I believe he will fall on his sword.

Republicans just need to stay on message.  These are the easiest spending cuts they'll ever have to make.  It has to stop somewhere.  If not here, then where?  If not now, then when?

Comments

[Donna Fitzgerald]

A lot of cuts could be made in employment in all federal civilian agencies across the board. Rather than cutting jobs, cut everyone's salary to 75% and reduce daily hours to 6, weekly to 30.

It's not like most federal employees actually work more than that anyway.

And they would still have a job and the copious benefits that go with it. If they don't like the hours or the pay, they are free to seek a better-paying job in the private sector.

[Sean]

We do need to cut goverment jobs, but we first have to get people in congress who will do what is right.

[Ian]

Donna, where do you work? Why don't we cut the salaries of everyone at your office by 75%, reduce your hours, and pretend that that will fix the economy?? If you don't like it, you can just seek a better-paying job, right? Then the whole country can blame you and your coworkers for bringing down the economy the way you're blaming government employees.

[(Not this blog's) John Galt]

Well said Ian

http://www.whoisjohngalt.co.cc

[Thomas Jefferson]

I'm not scared of my gov't, I live in a democracy. To weaken the gov't is to weaken the only power that average citizens have.

SOCIAL SECURITY is a separate tax and is NOT part of the $14 trillion debt. SOCIAL SECURITY not only runs itself but runs a profit every year!

This is how you can tell frauds, they try to scare ppl and lump social security into the $14 trill debt knowing that it doesn't add a penny into debt.

[Meritocratic Demarchist]

John Galt is the spoiled booger eater who won't share his toys.

-- Bill Bradfield
billbradfield@gmail.com

[M. Lee]

What type of "educated" American calls HIS president ( yes he is your president) evil? If you believe in the Constitution (which you regard so highly) this man was legally voted in to office by a Majority of Americans like yourself. If President Obama is evil what was Bush? Or Clinton for that matter? It takes more than one man to fix this mess we're in. The answer isn't with the Republicans or Democrats. The answer is in working together instead of apart!

mi838168@pegasus.cc.ucf.edu

[John Galt]

Yes, he is my president, which is why I expect better from him. I've read his oath of office -- he's not living up to it.

That's what we get for giving the job to a man who thinks freedom itself is an injustice.

You want to "work together"? So do I. But you've got a president who doesn't think everyone should work. He thinks it's better if we help some folks by just "spreading the wealth around."

I'm an American. Are you? Do you even know what it means to be an American? I can tell you this -- it doesn't mean that I should meet you halfway on socialism. It means you pull your own weight. You need to lose.

[Josh]

The one thing that separates humans from animals is our ability to rationalize our emotions/instincts and act on them in what ever manner we wish. You have the last say over emotion, not the other way around. With this ability comes the power to create and philosophy. Without these abilities where would we be? Well, probably in a farm ran by a more intelligent species. Basicly, if want your life to revolve around your emotions/instincts, go live in the woods with the rest of the animals but don't force the rest of us to go with you.

[Josh]

M.lee. Yes obama is evil. George bush was a moron that could barely keep his own business afloat. And clinton was just horny, he realy didn't do much more than monica lowinsky. The internet did the economy good for him. The reason obama is evil is because he wants to trespass on my property, walk up to my healthiest tree, mind you I worked my ASS off to grow it, and tear all the fruit off and give it to people that would rather buy a half gallon with them $ 20 they just got panhandling.

[Josh]

Ian. if you tried to take 75% out of my income I would break your nose then have you arrested for stealing from me. And what she is saying is not to cut them 75% but to reduce them to 75% of what they make now. The government is then only american business that is destined to be small. If idiots such as youself dont keep you mouth shut when you dont have a clue as to then solution let alone then problems, than then government will gladly accept the power you throw at them. They'd be fools not to.

[Josh]

Bill. You're just stupid and you can't fix that. Sorry. "Thomas Jefferson? You disgrace the name. The government is made of people we elect. Not us. The Constitution grants us rights over them. As does it them over us, but it also limits that power. To say that you don't fear a big government is just .....a lie. No matter who you are. The government is the only business in America that should have its size regulated. Get rid of social programs and laws that force people to live if they don't want to. Lower minimum wage and the tax rate, for everyone, and bring manufacturing jobs back to our soil. Bring back the American standard.