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Tuesday, May 10, 2011

Cuts in Government Spending

It really amazes me that so many people seem to not understand what it means to be making huge cuts in federal government spending while the economy is still weak. Thousands of government employes are being layed off. Many more thousands of government contractor employees are being layed off. With the current economy, and in places where a high percentage of people work for the government, most of those people are not going to find new jobs soon. As a result, many of them will have to start collecting unemployment from the state, or retire early if they are old enough and start collecting Social Security. Is that really going to help the economy?
And what about the support system for all those government workers? Here in Northern Virginia, as well as D.C. and Maryland, restaurants that sold meals to a lot of those government workers are loosing business and some have already shut down. The same is true of some gas stations and service stations. Commuter trains and commuter buses are also seeing drops in business. Yet many are insisting on many more cuts. Do we need a 30% unemployment rate to convince some people that cuts, cuts, and more cuts is not the solution?

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