Government Spending

In watching CSPAN coverage of Congress' response to the current economic crisis, I notice debate centers around whether to cut taxes or increase government spending. This is the exact same argument I heard as a boy. I spent a lifetime in the rapidly evolving field of computer science and am astounded that the science of economics has made no progress in over 40 years. I propose we give we-the-people a percentage any profits generated from technologies derived from government supported scientific research.

Michele Bachmann says that the earthquake and hurricane that have recently hit the East Coast of the United States were sent as some sort of divine warning message to politicians in Washington to curb government spending. I must respectfully disagree. I thought the divine message was a warning not to raise taxes for the wealthiest 1 percent of our population. But then, I don't claim to be as close to the message's source as Ms. Bachmann. It is, of course, a real shame that a number of people in the U.S. have lost their lives in Hurricane Irene as part of God's warning about government spending, but sometimes collateral damage cannot be avoided.

If the Bowles-Simpson bipartisan deficit commission's recommendations were adopted, our research indicates, they could slash 150,000 jobs in Maryland in the coming years. This is a blaring wakeup call for us to start focusing on broad-based job creation. High unemployment persists across the country for two reasons: the lagging effects of the economic downturn and changing workforce trends. In the face of a severe recession, no amount of stimulus, tax cuts or bailouts could prevent massive job losses, as we were generally unprepared for the realities of the workforce required by the new, global economy.

There is a grave and gathering threat to the nation. It is not some shadowy foreign terrorist group or a runaway asteroid that threatens to destroy us. Unlike the plots of summer blockbusters, we are not menaced by evil wizards, mutants or rising armies of the undead. No, the threat we face is real, dangerous - and of our own doing. I am referring to the failure of our political leaders to raise the U.S. debt ceiling. Most people do not fully understand trillion-dollar deficits, the national debt, or what the debt ceiling is, so let's be clear on what we are talking about.

My friends and I recently sat around talking about where our tax dollars are being spent and where we want our tax dollars to go. We want them spent here, in America. On America's soil and on America's people. Here's a novel idea. Why not spend our tax dollars on things that would benefit Americans? We need teachers. They are great for building trust and confidence and teaching right from wrong in little minds. They are very influential in the way children treat each other and these children will grow up to treat other adults in a respectful way. Give our teachers a raise and give our students air conditioning so they can learn and be better citizens.

The latest news on Maryland's economy has been disappointing at best. The state lost more than 13,000 jobs in May, one of the highest job losses in the country. But worse, the unfavorable monthly data comes on the heels of a U.S. Department of Labor report that ranks Maryland dead last in the nation in job creation over the last 12 months. That's not something to be taken lightly — losing 20,000 jobs over the past year amounts to a 1 percent hit to Maryland's employment base.

When it comes to teens having babies, it's a matter of pay me now or pay me later. You can pay for the programs that help teens understand sex and make good decisions about it, and you can pay for the health care services that provide them with options for contraception. Or you can pay for the misfortunes that are more likely to befall the child of a teen mother: health problems, behavioral and educational issues, and a greater likelihood of criminal troubles in adolescence and young adulthood.

I was dismayed to learn that my congressman, Rep. C.A. Dutch Ruppersberger of Maryland's 2nd Congressional District, voted for an unconditional $2.4 trillion increase in the U.S. debt ceiling limit without instituting any fiscal controls or compromises. Fortunately, the motion failed 318 to 97. Providing that kind of credit increase without any concurrent spending cuts or caps would have signaled to the world that we Americans aren't serious about living within our means. Such a message is egregiously irresponsible.

It seems lost in the budget cutting news and rhetoric that significant cuts to private sector businesses are likely to occur as the federal, state, and local governments cut back on domestic spending across the board. Small and medium size businesses sell many goods and services to the government, and without necessary government spending, their private sector businesses (and accompanying employment) suffer also. These examples include mom and pop restaurants serving government workers locally and various vendors and contractors, whether to sell office supplies or specialized consulting expertise.

Uncharacteristically, I want to begin this column with some good news on the economic front, though it will be brief: Across the country, state tax revenues are rising substantially, indicating there is a real recovery going on. For the spendthrift federal government, tax receipts rose by $110 billion, or 9.1 percent, in the first seven months of fiscal 2011. In telling us this, The Wall Street Journal says the bad news is that the federal deficit increased a record $871 billion, a $71 billion dollar bump, because spending went up $181 billion, or 6.4 percent.