Tuesday, January 13, 2009

Democrats: Efficiency vs. Equity

Democrats in Congress make Obama's plan more efficient and effective, by eliminating an expensive and ineffective proposal for a jobs tax credit. A good sign, although Obama's inclusion of this measure slows down the stimulus and is a bad sign that he is thinking too much about politics before he even takes office.

In Sacramento, some Democratic leaders will not implement furloughs because they are "unfair."
I am not a big fan of furloughs, because I think it is an inefficient way to cut spending. They are murder on employee morale and drive away the most talented and productive workers. Once the downturn is over, the government is as big as ever but less effective.

However, I think furloughs are fair. Most people in the private sector are working harder for less income (or not working at all). That's why state revenue is down. It's not the private sector workers fault either, but it's the current reality.

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