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	<title>Comments on: Congress should reject hard caps on discretionary spending</title>
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	<link>http://minnesotabudgetbites.org/2010/07/26/congress-should-reject-hard-caps-on-discretionary-spending/</link>
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		<title>By: KAZ Vorpal</title>
		<link>http://minnesotabudgetbites.org/2010/07/26/congress-should-reject-hard-caps-on-discretionary-spending/#comment-349</link>
		<dc:creator>KAZ Vorpal</dc:creator>
		<pubDate>Mon, 22 Nov 2010 17:42:54 +0000</pubDate>
		<guid isPermaLink="false">http://minnesotabudgetbites.org/?p=6155#comment-349</guid>
		<description>The big problem with those spending caps is that they leave the government ridiculously bloated. Cutting spending in ALL departments back to 2000 levels would be a far better solution.

Even cutting them back to 2008 levels, before TARP, the bailouts, the &quot;stimulus&quot; spending, et cetera, would be an absolute minimum for saving our economy.

In addition to these spending cuts, the Sessions-McCaskill amendment also required a two-thirds supermajority vote in the Senate to change the hard caps on discretionary spending, with no exceptions for any changes in the national economy or other factors that could make reconsideration of the caps necessary.

First, if it can&#039;t garner a 2/3 vote, then there apparently isn&#039;t a good enough &quot;economic&quot; reason.

Second, and far more importantly, government spending depresses the economy. Keynes&#039; ridiculous idea that you can boost the economy by spending has always failed to pan out, for good reason.

Every dollar the government spends has to come from the private sector, so that it robs monetary activity, instead of creating it. Each dollar also competes with the private sector, taking away investment, workers, creativity, et cetera.

Not only do these directly rob the economy of &quot;stimulation&quot;, but since only the private sector creates wealth, the net result is a loss of wealth creation.

For example, even if some stimulus roads project created 100 jobs to replace the 100 private jobs its tax burden destroyed, in a few months that roads project is over, and its jobs vanish...but the 100 private sector jobs would have continued to pay for themselves, lasting indefinitely.</description>
		<content:encoded><![CDATA[<p>The big problem with those spending caps is that they leave the government ridiculously bloated. Cutting spending in ALL departments back to 2000 levels would be a far better solution.</p>
<p>Even cutting them back to 2008 levels, before TARP, the bailouts, the &#8220;stimulus&#8221; spending, et cetera, would be an absolute minimum for saving our economy.</p>
<p>In addition to these spending cuts, the Sessions-McCaskill amendment also required a two-thirds supermajority vote in the Senate to change the hard caps on discretionary spending, with no exceptions for any changes in the national economy or other factors that could make reconsideration of the caps necessary.</p>
<p>First, if it can&#8217;t garner a 2/3 vote, then there apparently isn&#8217;t a good enough &#8220;economic&#8221; reason.</p>
<p>Second, and far more importantly, government spending depresses the economy. Keynes&#8217; ridiculous idea that you can boost the economy by spending has always failed to pan out, for good reason.</p>
<p>Every dollar the government spends has to come from the private sector, so that it robs monetary activity, instead of creating it. Each dollar also competes with the private sector, taking away investment, workers, creativity, et cetera.</p>
<p>Not only do these directly rob the economy of &#8220;stimulation&#8221;, but since only the private sector creates wealth, the net result is a loss of wealth creation.</p>
<p>For example, even if some stimulus roads project created 100 jobs to replace the 100 private jobs its tax burden destroyed, in a few months that roads project is over, and its jobs vanish&#8230;but the 100 private sector jobs would have continued to pay for themselves, lasting indefinitely.</p>
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