The bottom line is the following, a two trillion dollar cut in projected expenditures over ten years, for the Federal Government,for all intense purposes, is not a cut at all. It's too far out, totally unforecastable and too small to have any real meaning. We have written about this before and explained the folly of the politicians rhetoric directed toward the economically naive portion of the population, emphasizing budgetary balance.
The fact is that the federal government, minus defense, is significantly a unionized workforce. In spite of constraints on the federal unions to strike, some problematic events seem almost certain to occur if nothing is done to recognize this issue.
These unionized employees have become accustomed to regular raises and continually improving retirement benefits from the tax paying portion of the population.
But the tax base is not growing at a fast enough clip. As time passes, unless things change, the raises will be forced to stop which will lead to illegal work stoppage threats. History suggests that most unions want what they want when they want it, with little concern for reality.
As the number of people in government, both federal and local, reaches record highs, the ability to provide raises will end and strikes and slowdowns will become one of the next crises that the nation will face.
Only increasing profits, personal income, capital gains, dividends and interest will provide stability.
The fact is that the federal government, minus defense, is significantly a unionized workforce. In spite of constraints on the federal unions to strike, some problematic events seem almost certain to occur if nothing is done to recognize this issue.
These unionized employees have become accustomed to regular raises and continually improving retirement benefits from the tax paying portion of the population.
But the tax base is not growing at a fast enough clip. As time passes, unless things change, the raises will be forced to stop which will lead to illegal work stoppage threats. History suggests that most unions want what they want when they want it, with little concern for reality.
As the number of people in government, both federal and local, reaches record highs, the ability to provide raises will end and strikes and slowdowns will become one of the next crises that the nation will face.
Only increasing profits, personal income, capital gains, dividends and interest will provide stability.
