The debt hawks are to economics as the creationists are to biology. They, who do not understand Monetary Sovereignty, do not understand economics.
According to Joe Davidson, a columnist for the Washington Post:
“Here are some of the proposals that will have new life in the Republican-led House:
“* Federal employees would have two weeks off without pay, under a plan by Rep. Mike Coffman (R-Colo.), who says it would save $5.5 billion. Members of Congress also would be called to sacrifice by taking a 10-percent pay cut.
“* Federal raises and bonuses would be frozen for one year, and the number of employees would be limited, under legislation sponsored by Sens. John McCain (R-Ariz.) and Tom Coburn (R-Okla.).
“* The growth in the federal workforce would be cut by limiting hires to one for every two retirees, under a measure proposed by Rep. Cynthia M. Lummis (R-Wyo.). Her bill excludes the departments of Defense, Homeland Security and Veterans Affairs, which are among the government’s largest employers.
“* The federal workforce, with exceptions for security-related agencies, would shrink through attrition to February 2009 levels under legislation offered by Sen. Orrin G. Hatch (R-Utah).
“* The number of political appointees would drop to 2,000 from about 3,500 under a plan pushed by McCain and Sen. Russell Feingold (D-Wis.), who was defeated Tuesday.
“* Legislation sponsored by Rep. Michele Bachmann (R-Minn.) that would have eliminated the proposed 1.4 percent pay raise for federal employees was defeated in the House this year, but similar legislation could fare better next year.
“* Federal employees could be fired if they fall behind on their taxes, a proposal pushed by Coburn and Rep. Jason Chaffetz (R-Utah).”
Sounds wonderful, except for one small detail. Every dollar “saved” by these maneuvers is a dollar lost to the economy. For instance, forcing Federal employees to take two weeks without pay, would cost the economy the $5.5 billion Davidson talks about. That’s a $5.5 billion anti-stimulus.
So while the Fed feebly attempts to pump money into the economy, Congress attempts to reduce the amount of money pumped into the economy.
This is yet another example of Congress and the media having no clue about Monetary Sovereignty. If you want to help your country, please take a minute to contact your Congressional representatives and tell them to acquaint themselves with Monetary Sovereignty.
Or we can continue to suffer a recession every five years, on average, as we have for the past century.
Rodger Malcolm Mitchell
No nation can tax itself into prosperity. Those who say the stimulus “didn’t work” remind of the guy whose house is on fire. A neighbor runs with a garden hose and starts spraying, but the fire continues. The neighbor wants to call the fire department, which would bring the big hoses, but the guy says, “Don’t call. As you can see, water doesn’t put out fires.”