Archive for the ‘govenment spending’ Category

Stimulus: Will Some Republicans Join the President?

January 29, 2009

Ronald Reagan didn’t believe in more government spending.  He believed in less.  He didn’t believe in more government money through taxes.  He believed in tax cuts.

And that worked: for America and for Republicans.

Any Democrat can tell you that George W. Bush got America way off track.  But a real Republican would say, the bloated Bush budgets created his downfall and hurt the Republican Party.

Now the question is: can Barack Obama lure some Senate Republicans to vote for his House passed stimulus, to get that “bipartisan” seal of approval.

Every Republican in the House voted against the president’s bill, along with 11 Democrats.

The White House hopes some pork will be romoved from the stimulus in the Senate to win over some Republicans….

Related:
Old Republican Mantra May Be the New One Too: Smaller Government Means Better Economy?

From CNN:
http://www.cnn.com/2009/POLITICS
/01/29/rallying.gop/index.html

Will the GOP Compromise?
http://www.cnn.com/2009/POLITICS
/01/29/stimulus.next/index.html

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If you knew economic growth and new job creation begin to slow when total government spending is larger than about 25 percent of the economy, and you knew total government spending in the United States is about 36 percent of gross domestic product (GDP), would you propose policies to make government larger or smaller to create more jobs and boost economic growth?

By Richard Rahn
The Washington Times

Over the last few decades, many economists have done studies on the “optimum” size of government. A new study just completed shows the optimum size of government is less than 25 percent of GDP.

Optimum is defined as that point just before government becomes so large as to reduce the rate of economic growth and job creation. Governments are created to protect people and property. A government too small to establish the rule of law and protect people and their property from both foreign and domestic enemies is less than optimal.

The American Founding Fathers also believed government had public health functions (as contrasted with spending on private health), such as draining swamps where malaria-infected mosquitos thrived; and some public works functions (e.g. building and maintaining roads, and ensuring basic education – but not necessarily state-operated schools).

Read the rest:
http://www.washingtontimes.com/news/200
9/jan/29/the-optimum-government/

Close to half of the stimulus goes to entities that sponsor or employ or both members of the Service Employees International Union, federal, state, and municipal employee unions, or other Democrat-controlled unions.

See:
 Stimulus: “truly responsible government only a distant echo of our forgotten ancestors”

Economists Say “Stimulus Spending is Dead Wrong” for Economy