Sunday, October 21, 2012

Show Me the Real Money

A teacher told me she overheard two of her elementary age students discussing whom they were going to vote for in the election of 2000.One little girl told another, "I'm going to vote for Al Gore because that means we'll get more stuff."

Interesting. I wonder where she heard that. And this attitude seems to be as strong as ever today. I read in their local newspaper that Dilley, Texas, recently received a government grant that gave citizens-- regardless of income-- a free cell phone. When the government has to borrow 30 cents for every dollar it spends, it boggles my mind to see programs such as this. 

I heard from a young mother that most of her friends' children received braces through Medicaid, and she was considering it for her own children. I honestly didn't believe her. When I was growing up, only the two worst sets of teeth out of the four children in my family received braces because my parents couldn't afford braces for all of us. I did a little research to find the proof that the lady's statement was incorrect, and I was shocked to see that in 2010, Texas spent as much on orthodontic services for children through Medicaid as all 49 other states combined. So the taxes of working people who may not be able to afford braces for their own children are helping pay for braces of families who don't pay taxes. What's wrong with that picture?

Some years back my sister-in-law did a simple business survey using the phonebooks from two consecutive years in our hometown. The object was to count the number of businesses one year and see how many were still in business the next year. I was surprised to see how many were no longer listed the second year. The largest on-going employer by far was the government jobs-- federal, state, local, including the school, the government programs, government offices, government services, etc. 
But where does the government get the money to pay the government services and employees? 

Through taxes.

And yes, government employees pay taxes, but their salaries originate from recycled tax dollars pumped through the system to be taxed again. 

In the presidential campaign of 2000, Mr. Gore and his party drove the idea into the ground that a tax cut would only benefit the wealthy. (Sound familiar?) The wealthy were portrayed as the bad guys in that election. (same playbook) But isn't it ironic that some of the politicos are attacking the very group that is creating the real money needed to fund the government (and their own salaries)? I think they tend to forget that it is private industry and enterprise and corporations that employ people who earn the real money that is taxed and in turn pays for government services and employees. And before some of you get your dander up for me defending wealth-creators, we have to get beyond this class warfare mindset portraying all people of wealth as evil and greedy. Folks, there are dishonest, greedy people at every income level-- even the poverty level. And there are honest, compassionate folks at every income level, too-- even among the wealthy. 

I'm not advocating dismantling government services and jobs-- we cannot do without many of those. But I think there is a mindset among too many people that government funding is self-creating and self-perpetuating-- we don't really think about where all this money comes from. It's great to have more stuff, but we rarely stop and question or check the health of the source of taxes generated with real money to insure the continued provision of those tax-supported services and jobs.

A country whose biggest employer is the government sounds suspiciously like it is moving towards a state of socialism, which is the stage following capitalism in the transition of a society to (dare I say it?) communism. When the government seeks to control every aspect of our lives, our property, our businesses and economy, does that sound like freedom? But when individuals and organizations and businesses become so dependent on the government to meet their every need, they become blind to the fact that they are bought. Did you know that one of the definitions of subsidize is bribery? That bothers me. 

Our elected leadership-- no matter which party-- has to start protecting and encouraging the source of real money that is keeping the wheels turning in Washington as well as at the state and local levels, instead of crippling it at every turn. [Does France come to mind?] When our government spends $11.00 after collecting only $7.00, folks, the till is empty. And the government continuing to print more money is like sticking a bandaid on a dam that's in the process of bursting. 

All levels of government need to rid themselves of the notion that they can just tax more funding into existence when needed. If the government continues to grow, eclipsing private enterprise in communities, and when the bulk of tax dollars are from salaries paid from recycled taxes, the effort to generate more taxes becomes the equivalent of a dog chasing his own tail. And that's the point where we bite ourselves in the... well, you know how that goes. 

*  *  *

I wrote the bulk of the this column in 2001, and for this one I added the part about the phone grant, Medicaid paying for braces, and current figures for government spending and borrowing. Sadly, things haven't changed much. The fires of racial differences and class warfare continue to be fanned and kept burning to keep people blind to the truth that deficit spending is almost at the point of no return, and that too many of our elected officials are sacrificing the future of our country to protect their political careers by buying votes through government subsidies and hand-outs with money they don't even have. Dear God, help us. 

Monday, October 15, 2012

Giddy-up.