Government Spending Has to Be Reduced

Many people in developed countries rely on welfare to live their lives. The welfare state has been accepted as the only way for government to go - until now. Britain where the welfare state began is making major cutbacks in government payments.

Even in the US, where government support is perceived as low by non-US citizens, middle class welfare is rife. The term middle class is a widely misused term. Everyone knows it means the rich. It seems everyone has the their hands in the government feed trough.

In Australia the baby bonus was introduced by a right wing Howard government. It is ironic that it has been virtually abolished by a left wing government. It was available to all, rich and poor. No means testing was ever done.

The problem is political parties keep giving in order to be elected. This happens until a major deficit occurs and cutbacks are forced onto prevailing government.

If redistribution of income was not done the rich would get richer and the poor would be used as "serf" labor. Unfortunately, political parties "look after their own" when they are elected to government. Right wing governments do have a heart and do redistribute mainly to the poor. However, middle class welfare tends to creep up over time.

It is now accepted by the average voter in developed countries that the time has come for significant cuts in government spending. People do "squeal" when spending is cut specifically to them. There are immediate consequences when recipients no longer receive benefits. The Salvation Army has had a major increase in single mothers wanting food assistance.  This is due to single mothers being forced onto the dole by recent government changes.

A direct problem to hard government cutbacks, when public servants are dismissed, is an increase in unemployment. Of course, this means a higher demand for unemployment benefit support. There is always the danger of pushing the economy into recession. If this is the consequence of spending cuts voters soon change their tune and blame a government. Rationally, continuous priming of an economy by more spending must ultimately end. The piper must eventually be paid.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Australian Blog