Why shouldn't we privatize the "non-essential" parts of government that have been shut down?
The Democrats have already said through their actions that they aren't necessary.
It doesn't even have to be all at once. Just phase them out over two years.
Tea Party whats the shut down to be permanent. "
Hmmm, so leftists don't know the difference between "shut down" and "privatized."
- irongramaLv 68 years agoFavorite Answer
First non essential does not mean not necessary. There is a federal law from the late 1800s that is still in effect. It says that without congressional approval money cannot be spent unless it is essential to the preservation of life and safety. This means that nurses, doctors and other employees of VA hospitals can be kept working but the people who process veterans applications for disability cannot. I think the people that process these claims are necessary but they do not meet the definition of essential.
To answer your question government does these jobs better and for less money than private industry. This has been shown over and over when a service is privatized and is really quite obvious if you think about it. Private industry is for profit so in addition to the costs of performing the service there has to be money for profit. It therefore costs more. Government should be the ones that perform government services that is why they are government services.
- BflowingLv 78 years ago
Non-essential is not the same thing as not needed. Essential means a position that has a direct effect on security, health, law enforcement, etc.
FBI agents will remain on the job, but some of their clerical staff will be sent home. Border patrol and customs will remain, but their personnel people will be sent home. And so it goes through all the agencies. However, it can't last forever.
- Anonymous8 years ago
Tea Party wants the shut down to be permanent.
Whatever, you sound like a real douchebag either way. lol.
- Whatever4Lv 78 years ago
We already have privatized many of them. That's why there's so many contractors and contracts that have also been sent home.
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- 8 years ago
Q1: Does the US taxpayer have a real “national debt”?
A1: No, our “national debt” is a cruel hoax lacking all three of the essential qualities of a real debt.
1. A real debt must be repaid. The “national debt” has never been repaid and will never be repaid.
Yes, Treasuries are redeemed at maturity, but the “national debt” is the total value of outstanding Treasuries (TVOT). Since 1971, we have rarely had even a modest annual budget surplus. No serious politician today has any plan whatsoever for a budget surplus. And the TVOT must grow with population. A modern economy without an adequate supply of risk-free, interest-bearing Treasuries is unthinkable!
We leave our grandchildren not debts but assets: nature, infrastructure, and culture. Lest we waste time, we must fully employ all of our idle resources, as did Presidents Lincoln (railways, telegraph, land-grant colleges), Theodore Roosevelt (National Parks, Panama Canal), and FDR (TVA, PWA, WPA, CCC, etc.)
2. A real debt must be a significant burden. The “national debt” is not a significant burden on taxpayers.
The Treasury redeems securities by selling securities, which it creates with a few keystrokes. If needed, the Fed can create an artificial shortage by buying securities on the open market with a few keystrokes.
The Treasury auctions bonds only because Congress requires that the proceeds cover the annual budget deficit. This requirement was suspended during World War II (during which the Fed bought Treasuries) (http://neweconomicperspectives.org/2013/08/mobiliz... followed by 35 years of strong economic growth without harmful inflation. Thus, “borrowing” to cover the deficit, a relic of the former gold standard regime, was and remains absolutely unnecessary for a prosperous economy.
Under our fiat currency and floating foreign exchange rate regime, which we have had since 1971, budget deficits can certainly be financed again by keystrokes while balancing full employment against inflation.
Inflation? Deficit spending NEVER causes inflation during a recession. During prosperity, bank lending ALWAYS causes inflation, creating over $6 of credit for every deficit dollar spent. Regulate the banks!
3. A real debt bears a significant interest. The “national debt” bears no significant interest for taxpayers.
Yes, the bond-holders receive interest payments, but the Treasury pays the interest by simply auctioning more bonds, which it creates with a few keystrokes. The bond-buyers pay the interest! Economists recognize this by declaring that our “primary” annual budget deficit does not include debt interest payments because they never consume physical resources and have no economic effect.
Q2. Could savers stop buying Treasuries?
A2. Yes, when savers no longer want insurance, annuities, pensions, 401(k)s, or other provisions.
Q3: Could savers make a run on Treasuries?
A3: Yes, when savers can get risk-free returns from the Wall Street casino or from GM bonds, Illinois bonds, or Detroit bonds. Safety is not everything. Safety is the ONLY thing!
Q4: Could savers prefer foreign sovereign bonds?
A4: Yes, indeed! So far, over 60% of the world’s reserve currencies are in dollars and half of all US Treasury bonds are held by foreigners. But that could change if China’s sovereign bonds become safer than ours. And that could happen only if China’s infrastructure (and so its productivity) becomes better than ours. And that could happen only if US voters worry more about our “national debt” / TVOT than they worry about our failing schools, falling bridges, bursting sewers, decrepit railways, and aging power grid.
Q5: Won’t we need higher tax rates to pay for infrastructure?
A5: Contrary to the myth, our money tree does not spend with our taxes. For spending, Congress creates money out of thin air. (Think about it: where and how did the first tax-payer get money for the first tax payment?) To prevent inflation, the IRS repossesses as much of the spent money as it can and then destroys every cent. (Cash payments are shredded and you can actually purchase the shredded paper!).
Every federal dollar that is spent and not repossessed by the IRS is saved by the private sector. Our annual budget deficit is exactly equal to the annual private sector savings increase. Yes, DEFICITS = SAVINGS! No deficits, no savings! Our so-called “national debt” is really our Total Private Sector Savings (TPSS). The scary “Debt Clock” is really the “Savings Clock”! The “national debt” scare is a corrupt fraud!
Since bank loans must be repaid with interest, budget deficits are the ONLY source of private sector savings. We need to DOUBLE our “national debt” / TVOT / TPPS to return it to the WW II level that was followed by 35 years of prosperity without harmful inflation, even with very high tax rates. Our ratio of “national debt” plus total bank deposits to GDP is less than half of the comparable figure for China. Our ratio of M2 (money supply) to GDP is half of Switzerland’s ratio and one quarter of Hongkong’s ratio.
- Anonymous8 years ago
privatization worked really well in iraq, didn't it?
- FrancisLv 68 years ago
Private business would somehow be corrupted by the left. They should mostly be eliminated. I doubt they have fired anyone for incompetence in decades.
- Anonymous8 years ago
Oh,. the real Agenda,. pops it's ugly head.
Which part you interested in Bubba $$
- RaineLv 78 years ago
I think your confused...
- Ford PrefectLv 78 years ago
so...which one first...feeding the children?