| mike_intellivision said: I have heard that theory before. I also know that Britain cut the government and cut 0.5% off its GDP. There are no easy solutions and to take something direclty off the table because you don't like it is simplistic and foolish. I am not saying that you should not examine it before enacting it -- but that everything has to be on the table. We cannot "ready, shoot aim" which too many people seem to want to do. Nor can we fight the deficit with one hand tied behind our back. |
Government certainly contributes to GDP, but not in a sustainable way. If it was sustainable then we could have the greatest economy on earth by borrowing $15 trillion a year and spending it on bridges. (oh wait, we sort of are doing that.) How many private sector workers paying taxes does it take to finance one government job? When government cuts too fast there is a hiccup that will lower GDP but if government allows growth it will recover. All the high paying jobs around where I live (with the exception of doctors and lawyers) are government contractors. So if they close down half of that and people move out small businesses in the area will suffer. Or, maybe someone in the private sector will see this pool of educated people and the relatively cheap real estate and start something up.
