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COMMUNET Home

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COMMUNET  October 1997, Week 5

COMMUNET October 1997, Week 5

Subject:

Government's growth threatens paying off the federal debt

From:

Curt Priest <[log in to unmask]>

Reply-To:

Community and Civic Network discussion list <[log in to unmask]>

Date:

Thu, 30 Oct 1997 09:34:09 EST

Content-Type:

text/plain

Parts/Attachments:

Parts/Attachments

text/plain (282 lines)

Archive:  Government's growth threatens paying off the federal debt
Distribution: CYBER-SOC list (Cyberspace Society)
              COMMUNET list (Community Networking)
              ROUNDTABLE list (CNI's Telecommunications Roundtable)
              ROUNDTABLE-NE list (Telecommunications Roundtable North
East)
              PUB-ADV list (Libraries for the Future, Public Advocacy)
              MEDIA-FORUM list (Alliance for Community Media)
              FAST-NET list (Loka Institute)
              COSN-DISC list (Consortium for School Networking)
              DEBT (debt@@csf.colorado.edu)

CITS Observations on attached article
Dr. W. Curtiss Priest

Preface:  A subscriber to TPR-NE recently asked about whether some
of my postings are "on topic."  This is a valid criticism as
we carefully select lists, and drop the ones that are not of interest.

Perhaps some see my occasional "off topic" postings as noise.  I
hope not.  Perhaps some think I have nothing better to do -- but
this is not so -- a hybrid web/telephony database project to
coordinate community volunteerism is my highest priority!

I do admit, however to be in a minority who fundamentally believe that
debt is the most significant problem facing us all.  And others
such as Graham Ruddman and Paul Tsongas were sufficiently concerned
about the national debt that they formed the Concord Coalition
with chapters throughout the country.

I leave this issue to the readers of lists I post to.  I only post
to lists I belong to and have a central interest in.  Please e-mail
me if you would rather I didn't post to a particular list.  I won't
take offense.

Commentary:  Having had my salary paid for by the Federal government
for over twenty years -- to fight pollution, to coordinate railroads,
to identify ways of saving energy, to establish telecommunications
policy & proceedures, and to provide technical assistance to K-12
schools to use the Internet, I am not against government in the way
that Jeff Jacobi, the Globe columnist, is against government.

However, I am concerned that the current thinking is for deficit
reduction -- not debt reduction.  And it is on this score that
Jacobi and I are in agreement.

Ambrose Bierce said in the _Devil's Dictionary_ "liberty is the
freedom to anything you choose within an infinite number of
constraints."  I am not that cynical.  And I am more libertarian
than not (but not as much as my father with whom I could not
even get his agreement that "electrical codes" that protect
families and homes from injury, death and loss of property, was
a good thing for government to be enforcing).

Having documented how the federal government finally addressed
health and safety issues in a book entitled _Risks, Concerns,
and Social Legislation_ (1988), I was able to see how the
concerns of the states for health and safety gradual gave rise
to the legislative interventions passed in the '70's.

On the Cyberspace Society list we have been discussing, in part,
whether the "safeguards" placed in the economic system after
the depression of 1929 are sufficient to ward off all future
depressions.  If you read histories of the last depression you
will find that there was, too, a sense of a "Goldilocks" economy
in the late 1920's.

Yesterday, Greenspan solemnly addressed the Joint Economic
Committee of Congress, and reassured the committee that the
recent sudden decline could prove "a salutary event" to help
prolong the almost-seven-year economics expansion.

In full agreement, though with more hesistation, Alice Rivlin,
the most distinguished economist from OMB, and now the Assistant
to Mr. Greenspan, gave a stellar performance before a PBS
interviewer.  Despite quite pointed questions about the
significance of the Asian severe monetary problems, Ms. Rivlin
beat the drum of trying to "calm the markets."

I surmise there was a closed-doors meeting in which these two
agreed that this was the best policy to help this country.

I disagree.  I consider Greenspan's testimony before the
committee to be both perjury and treason.

As Davidson and Lord Rees-Moog notes in _The Great Reckoning_,
politicians put off corrections because it is in their
political interests to do so, not because it is good for the
country.  And, they note, that every day debts are allowed to
accumulate further, the final "reckoning" will be that much
greater.

**************************************************************************
NOTICE: Contains copyrighted material, do not redistribute unless you
abide to the copyright notice appearing at the end of this article.

As provided for under Section 107 of the 1976 Copyright Law, the
following piece is being distributed for non-profit purposes and for
comment, criticism, and teaching.  In cases where the purpose of
conveying information is to fully inform the reader, the entire body of
the work is reproduced.

Should you wish to convey this material, in the same spirit, you are
free to do so.

****************************Advertisement********************************
Subscriptions to the Boston Globe can be received by calling 617-929-2000
****************************Advertisement********************************
Boston Globe, October 30, 1997, p. A23

With all the excitement on Wall Street, you may not have heard about the
other plummeting number in the news this week. According to the Treasury
De-
partment, the federal budget deficit for fiscal year 1997 - which ended
Sept. 30 - was just $22.6 billion. The last time it was that low, Gerald
Ford was president.

So shouldn't we be dancing in the streets? Quite recently, after all, the
country was athunder with calls to eliminate the federal deficit. In
1992,
Ross Perot drew. nearly 20 million votes for president, almost onefifth
of
the total, with his pie charts and blunt talk on the evils of deficit
spending. Just days after taking office in January 1993, Bill Clinton
ditched his longpromised middle-class tax cut because, he said, deficit
reduction was a higher priority. There was no political
backlash. When Republicans swept to control of Congress in 1994, the
first
item in their "Contract with America" was the Balanced Budget Amendment.

Surely, then, the near-evaporation of the deficit is a major piece of
good
news, light?

Wrong. It is a very minor piece of good news. It means simply that the
federal government will pay its bills this year without (too much)
borrowing. But those bills - the budget of the US government - are bigger
than they have ever been before. Though the deficit has been slashed,
spending continues to skyrocket.

In the year Newt Gingrich became speaker of the House, federal outlays
totaled $1.46 trillion. This year, federal outlays are expected to hit
$1.7
trillion. By 2002, they are expected to reach $1.9 trillion.

It is hard to grasp amounts so unfathomably huge, but here is an exercise
that may help: Add together every penny the federal government spent from
1800 to 1940. Adjust the total upward to reflect nearly two centuries of
inflation. You will wind up with less than the $1.7 trillion budgeted for
this fiscal year.

In other words, the government in Washington will spend more of the
nation's
wealth in the next 12 months alone than it spent in the 140 years from
Jefferson's first term through FDR's second. It will cost more to run the
federal government for a single year than it cost to fight the War of
1812,
the Mexican War, the Civil War, the Spanish-American War, and the First
World War; more than it cost to pay for the Louisiana Purchase and the
acquisition of Alaska; more than it cost to create the Panama Canal, to
build the Library of Congress, to construct the Hoover Dam, to carry out
eight national censuses, to relieve the Great Depression, and to operate
the
postal system for five generations - combined.

The deficit is down. But the government is exploding out of control.

Two years ago, President Clinton declared the Era of Big Government over.
Republican budgeteers spotlighted 300 federal agencies, commissions, and
departments they intended to zero out of existence. It was all humbug.
Big
Government grows bigger by the hour. Most of the agencies slated for
elimination have seen their budgets rise. From the Department of Commerce
to
Goals 2000 to the Bureau of Alcohol, Tobacco, and Firearms, Congress and
the
president are expanding the scope and cost of government beyond anything
in
our national experience.

The only major area in which the federal government has sharply cut back
in
recent years is defense. This is the famous "peace dividend" made
possible
by the end of the Cold War - which in turn was made possible by Ronald
Reagan's military build-up.

"Just as the Reagan defense build-up caused the deficit to soar in the
1980s," writes economist Stephen Moore of the Cato Institute in the new
issue of The American Enterprise, "it is primarily the Reagan peace
dividend
that has caused the deficit to plummet in the late 1990s.... The budget
deficit is falling today not primarily because Clinton or Bush raised
taxes
. . . but because the defense budget is now more than $100 billion a year
lower than when the Berlin Wall was still standing."

While spending on the nation's defense has

[ELEANOR MILL ILLUSTRATION here of a very large pig labeled with
"Federal Bureaucracy."]

dropped to its lowest level ever - 16 percent of the federal budget -
domestic spending has shot up to an unheard-of 68 percent. Never have
social
programs eaten up so large a share of the nation's economic output. Never
have so much of of earnings been confiscated to pay for government
schemes.

But we are losing more than money. We are losing freedom. The bigger the
government gets, the further its tentacles reach, the less we are
permitted
to decide anything for ourselves.

Today, Washington decides what medicines we may buy. Washington decides
how
long new mothers stay in the hospital. Washington. decides how we may
prepare for our retirement. Washington decides what our children shall
cover
in school, what labels must appear on wine, how many gallons of water our
toilets may flush. Washington decides whether office-supply companies can
merge, whether tobacco billboards may go up in ballparks, whether cars
may
be sold without airbags.

Soon, reports The New York Times, "the federal government will start
operating a computerized directory showing every person newly hired by
every
employer in the country." Is this what we want?

More government always equals less liberty. With every budget Congress
passes, we lose more of our rights. The big story isn't that the deficit
is
being erased. It's that our freedom is being erased. And we are letting
it
happen.

Jeff Jacobi is a Globe columinist.


***************************************************

Copyright Notice:  This article is protected
under copyright law.  The right to disseminate
this article is also protected under copyright
law.

The copyright law permits copying of materials for
personal use under the protection of fair use.

The copyright law also permits the copying of
recent materials for the "teachable moment."
This allows copying for educational purposes.

Also, the courts generally interpret copyright
protection by economic criteria.  If the
copying of a material reduces revenues to the
copyright holder, the court usually decides in
favor of the plaintiff; if the copying doesn't
effect or increases the revenues, the court
usually decides on behalf of the defendent.

It is our judgment that occasional copying of
a newspaper article does not reduce revenues
to the publisher and can actually create more
demand for a newspaper by attracting readership.
An excerpt provides free advertising for the
publisher.

Thus, under fair use, teachable moment, and
economic criteria we selectively convey this
copyrighted material to others.

******************************************************


           W. Curtiss Priest, Director, CITS
      Center for Information, Technology & Society
         466 Pleasant St., Melrose, MA  02176
       Voice: 781-662-4044  [log in to unmask]
 Fax: 781-662-6882 WWW: http://www.eff.org/pub/Groups/CITS

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