The government cycle of economics

The proposed city fire fee has me thinking about the maneuvers all government bodies are taking in order to conform with mandates to lower budgets while meeting the need to providing essential public services.

Here is the way it is going to go, in my opinion.

State, local authorities all raise millage rates that increase property taxes to cover declining budgets

Fees go up for all government services …. everything.

Less than 1 percent of government workers get laid off because that is the “sacred cow” that no government official is going to face.

Public sector pensions and benefit costs will continue to skyrocket but are not passed on to the employee; instead, the private sector gets whacked with those costs.

Has anyone asked what the pension benefits are for the average firefighter … per month … that are mandated by the state retirement plan? One local official tells me that, in the context of the demand for extraordinary budget cuts, they are “amazing”.

The private sector shrinks as economic activity is stifled by new and increasing tax burdens; causing the federal government to step in with more entitlements and bailouts.

Public service unions protect their turf and support incumbents to be reelected.

The federal government raises taxes on the “rich”; hiding massive regressive tax increases in pass-through business expenses.

Naturally, the cost of living skyrockets and inflation reduces your discretionary income.

Large corporations pick up the pieces as small businesses are wiped out and municipal corporations continue to avoid facing problems they helped create.

Politicians repeat the cycle.


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