February 3, 2010
How government spending hurts you
By James Wilson

On Monday, President Obama proposed a federal budget for 2011. It features record-setting spending and borrowing. We believe it will do more harm than good. Please tell Congress to oppose this budget and work to cut federal spending.

You may copy or borrow from the following letter . . .

I demand that you oppose President Obama's $3.83 trillion budget with its $1.56 trillion deficit.

* the deficit alone will be larger than individual and corporate income taxes combined
* the cost of the federal government will be over $36,000 per family
* of which $17,000 will be new debt

The cost of the federal government is vastly greater than the benefits it provides. And the American people don't want such a bloated budget. According to a January 29 Rasmussen Report . . .

**53% of likely voters now believe that decreasing the level of government spending will help the U.S. economy**

They're right! A report by the Heritage Foundation shows that . . .

* numerous studies indicate that growth in government spending harms the economy and increases unemployment
* nations such as Ireland, New Zealand, and Slovakia experienced tremendous growth once they slashed the size of government

This is because government spending is less efficient and often destructive . . .

* government spending is less efficient because it allocates resources based on politics, not on market price signals
* if the spending is funded by taxes, private consumption and saving is reduced
* if the spending is funded by borrowing, there is less capital for private investment
* borrowing could also lead to monetary inflation, resulting in price inflation
* government programs distort personal incentives in many areas, such as retirement savings and healthcare

Follow the will of the American people. We understand that Big Government is harmful. Make it your priority to work on cutting the size of government and reforming our entitlement programs. The proposed spending freeze isn't enough, and is clearly fraudulent given the fact that federal spending will continue to soar. Give us real spending cuts, not con jobs.

If you take the lead on this issue, you will be rewarded, but if you don't, you may be fired from your position.


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Jim Babka

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