Welfare, Gov't Workers, and Economic Costs
02-10-2012, 10:53 AM
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Libertarian Resistance
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Joined APC: Feb 2007
Position: 757 FO
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Welfare, Gov't Workers, and Economic Costs
A thought experiment:
Say a ward of the state receives 25K in benefits, all of which is consumed, and no taxes are paid. On the big balance sheet, the economy is out 25K.
Now, say a Federal employee pulls down 125,000K and is taxed at a 20% rate--returning 25k to the treasury. But, since he is paid from the treasury, the big balance sheet shows a loss of 100K.
So the question becomes, when the value added by this employee's work is combined with the stimulative effect of his spending, does that number justify the salary of the employee?
Put more simply that question might also be asked: If government employees were fired and put on welfare, would the economy be better off?
WW
Say a ward of the state receives 25K in benefits, all of which is consumed, and no taxes are paid. On the big balance sheet, the economy is out 25K.
Now, say a Federal employee pulls down 125,000K and is taxed at a 20% rate--returning 25k to the treasury. But, since he is paid from the treasury, the big balance sheet shows a loss of 100K.
So the question becomes, when the value added by this employee's work is combined with the stimulative effect of his spending, does that number justify the salary of the employee?
Put more simply that question might also be asked: If government employees were fired and put on welfare, would the economy be better off?
WW
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