When Ronald Reagan warned us about Government being a problem, I thought he was a greedy sellout. I thought he was trying to squeeze government, so corporations can exploit citizens. It took me several years to realize, that he was talking about the debt.
Here's the problem, when we increase the public sector, we have to steal money from future generations to make payroll. The only way to fund the public sector is through taxes or borrowing. Unlike the private sector, the public sector generates very little economic output. America can't reach a balanced-budget because it has too many people on public payroll. We've created too many jobs in the public sector, and too many government agencies.
We need to make sure that all public jobs are necessary and have a roll. If we're only creating public positions out of goodwill, than we are doing more harm than good. We have to increase taxes or increase borrowing to pay for their position. When we increase personal taxes, we reduce disposable income.
Many people want a government job, because of job security, higher salaries, and benefits. They also want an increased pension. We need to transfer people out of the public sector, and into the private economy. We need to implement good corporate regulations, so people want to have a job in the private sector. So many corporations are treating their employees like crap. We need to reduce taxes, in exchange for higher paychecks. I agree with progressives. We need to produce an economy based upon disposable income, but we need to have separate minimum wages, for different skill levels.
The link between minimum wage, and unemployment is well-known. If a company agrees to hire a homeless person, they should be able to hire them for a lower wage. We should have a temporary reduction of the minimum wage for the unemployed. This would allow companies to create new positions to train and mentor the homeless. A selective minimum-wage could get a lot of people off the streets. The unemployed, should be working and paying taxes. This would reduce the need for welfare, and allow us to close prisons. These are conservative solutions, that would allow us to live in a more progressive society. If we transfer people out of the public sector, we might be able to balance the budget. We need a limited, but defined public sector.
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