President Obama urged reluctant lawmakers Saturday to quickly approve nearly $50 billion in emergency aid to state and local governments, saying the money is needed to avoid "massive layoffs of teachers, police and firefighters" and to support the still-fragile economic recovery.Uncle Sam can't cover his own bills... he doesn't need to be taking on those of the 50 States as well. The problem is D.C. has been deficit spending so long, they think they can do ANYTHING, if they just print enough bonds.
When responsible families go through financial crisis, there's a prioritization process that goes to work. Certain expenses are non-negotiable -- one must eat, after all. But dinner doesn't have to be at a restaurant, nor does the daily cup of joe have to cost $5 at Starbucks. The prudent family pares back on the non-essentials until the income outlook improves. The truly wise are able to draw on savings put aside to ensure the essentials continue without interruption.
None of this bears any resemblance to how we now govern ourselves in this country. California is already paying its bills with IOUs, and the governor of New York warns of "anarchy in the streets" if the legislature doesn't keep passing emergency spending bills (these being necessary because they can't figure out how to pass a budget this year...). Threats of closing down fire departments and police layoffs are waved about to generate acceptance of the latest revenue enhancing scheme.
But nowhere in all of this is the hard question being asked: what are the core, essential functions of government, and what spending is likely not government's place -- but tolerated when times are fat. If we really want our economy to recover, this discussion must take place, and soon. Otherwise, we'll continue subsidizing ridiculously frivolous gov't programming, all while squeezing dry the few remaining productive sectors of the nation.
Our leadership class has shown it's incapable of making these decisions, so events will force reality on us as it pleases. Which, in the end, won't please us very much.


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