Pasadena Politics

Honestly, if Obama focuses on anything, it is guaranteed to fail.  Instead of changing their strategy to take into account the Conservative Brown victory in Massachusetts, they are doubling down on their far from spend-thrift agenda.  Instead of cutting costs, they are giving away money which, while nice, does nothing to generate income.   Which brings up this salient point: every job that the Federal Government creates by hiring Federal Employees, requires a larger number of people to be employed or increasing in income to support them.

Warning: rough calculations ahead

Per the Bureau of Labor Statistics there are approximately 2,016,800 employees and their average wage works out to: $74,403.00.  This would seem to mean that $150 Billion is spent on Federal Employees alone.  If the Average Median income is $50,000.00, then for single filers with no credits and the most basic refund will generate $5,050.00 in Fed. Taxes.   Social Security, Medicare, and FUTA are not included since those are, supposedly, marked for specific programs.    Therefore, it takes 15 workers to support just one active Federal Employee.

To support the current wage base, it would take 29,714,054 workers earning the average Median income to support the Federal Employees alone.  This does not include those who are on pensions, Social spending, non-wage related expenses such as per diems and travel expenses, and spending on goods and services the Federal Government uses.  That is nearly 30 million people who have to make $50,000 without any deduction and without any credits to simply supply the Federal Government’s Payroll.

So… what is the answer?  Apart from the obvious of shrink Government, it would be to promote the increase in the Average Median Income.   This cannot be done by wealth re-distribution as it encourages mediocrity.  This cannot be done by increasing the minimum wage (a popular solution among those who don’t know or don’t care about the consequences) as it increases the costs of goods and services.   This cannot be done by increasing the tax rate as it stagnates income generation when it goes over 23%.   Lowering the minimum wage, lowering the tax rate, and cutting redundant programs would be a start.   Add to that cutting the Federal Payroll for bureaucratic positions and dramatically slashing Social programs would be an added boon as it would mean lower tax rates necessary to maintain the Federal Government while it pays down it’s own debt.

The next step would be to end Social Security and Medicare entitlements for those under 50.   That is, if you were born after 1960, you cannot count on Social Security or Medicare to exist.   Those older than 50 would still be eligible to receive it and the current working population would continue to contribute but the employer portion of the contribution would be cut completely (something employees forget about when they gripe about their paychecks).  Health Care reform would first limit the rewards for Trial lawyers and require more tangible proofs of negligence.   It would also encourage States streamline their own regulations with regards to Health Insurance and acceptance of out of state insurers.   Additionally, it would move any credit given for holding health insurance from the employer to the employee.  This would encourage the individual to purchase health care and avoid the temptation of Government to tax employer offered health care as a benefit while freeing the employee from tying them self to a company solely because of Health Benefits.

Government does not need to supply health coverage.   Doctors already abide by the Hippocratic Oath, State and Federal regulations require emergency care to be given without proof of insurance, and the market will adjust and perform better the less government tampers and bullies.