We are currently going through rough economic times, perhaps a recession, as anyone knows who's lost a job or who has cancelled a long-planned vacation because the dollar has fallen significantly against the EURO. And the collapsing housing market may not have hit bottom yet.
So if you are losing your house because you've gotten in over your head, do you want the government to help bail you out? That hope may have some logic to it, for after all, the ripple effect through the economy has been significant. A strong housing market is a basic component of a strong economy. Likewise, a weak housing sector is evidence of a weak economy.
But if you did not buy a house because you felt you couldn't afford it, while others speculated and assumed the price of houses would always go up, are you sympathetic enough with those who are losing their homes to want the government to step in? With your tax dollars?
Of course, the problems in a global economy will not be easy to solve with a few adjustments in mortgage rates. So this may be a good time to have a discussion about our low savings rate; our desire to buy ever more material things on credit; our willingness to treat our homes as an ATM machine, as one letter to the editor stated in the Los Angeles Times; our desire to earn and consume more than the rest of the world; and our assumption that government will always come to the rescue.
Do we really practice capitalism if government programs help shore up the economy? In fact, with all the subsidies and special benefits given to one industry or business over another, do we really have a free market?
Someone taking home a paycheck based on the minimum wage won't likely think of that as government interference in the marketplace, even though it is. Of course, most would agree that some kind of safety net is not a bad thing. So the question is, how much should government help people when citizens are caught in a bind?
We count on unemployment insurance and retraining programs when we lose a job. We are glad to collect Social Security even though we collect more, on average, than we've paid into the fund because we are living longer. Again, this problem is one we seem to be putting onto the shoulders of our children and grandchildren.
It seems that the question in this category of the Tax-and-Spend Game is one of degree. So when you look at the programs below, consider how much you think these are essential to our economy and how much they are "band aids" that keep citizens from taking on more responsibility for their own financial well-being.
If you are aware of other programs funded by local, state, and/or national taxes that help sustain and promote a strong economy and essential jobs that are not included in this list, please let me know. Use the Contact Us form.
How do you want your taxes to be spent in order to help create economic stability and job growth? |
| ________ |
Shore up Social Security |
| ________ |
Management of unemployment and disability insurance |
| ________ |
Stimulus programs to prevent and moderate recession and inflation forces |
| ________ |
Farm subsidies |
| ________ |
Job creation programs for those who've lost their jobs through such forces as outsourcing |
| ________ |
Job training programs for emerging markets |
| ________ |
Enforcement of employment laws (such as fines for employment of illegal aliens) |
| ________ |
Regulate national business conducted overseas |
| ________ |
Development of programs such as FEMA to help communities when disaster strikes |
| ________ |
Support of technology research to fund future economic programs |
| ________ |
Enforcement of tax laws (especially in the collection of billions in unpaid taxes) |
| ________ |
Equal opportunity employment enforcement against sex, race, age, culture, and religion |
| ________ |
Investment in research and technology to solve problems like climate change and genetic diseases |
| ________ |
Tax incentives for companies in order to bring in business to a community |
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HOW TO PLAY
1. Read How Will the Election Change Our Taxes? for an introduction to the game.
2. Read Rules for the Tax-and-Spend Game in order to understand the assumptions under which the rules have been written — and to learn what you have to do to win the game.
3. Use the line in front of each item to write how you would like funding to continue, to be reduced, to be increased, or to be eliminated.
4. Complete all eleven categories in order to win the game.
Remember, while eliminating government waste should be pursued if for no other reason than that it will reduce taxes to some extent, that action alone will not eliminate the national debt.
Ask yourself the following questions to help you consider the importance of each item on the left. Pay particular attention to "why" and/or "how" you answer the question the way you do.
 Have I or my friends benefited from this government program? How?
In what way does this service benefit society as a whole even if I, or my family and friends, are not personally affected by the program?
Do I believe government should fund this program? Why?
If I am currently participating or benefiting from this program, would I be willing to have it eliminated in order to balance the budget?
How would I suggest the services provided by this program be funded? Why? See How Does the Government Get Our Money?
Could the services of this program be easily provided by the private sector? If so, how?
In the line to the left of each item, write one of the following:
Maintain . . .
. . . indicates you are satisfied in having your taxes support that particular economic stimulus or job growth program in local, state, and national budgets at the same rate your taxes fund it today
Decrease . . .
. . . indicates you want to spend fewer of your tax dollars on that item
Increase . . .
. . . means you believe the government needs to do more than it is currently doing and you are willing to be taxed accordingly
Eliminate . . .
. . . means you do not want the government to provide this service and you know a way in which it can be supported effectively without taxes (see How We Pay for Government Services)
Use the Contact Us form to send comments and questions concerning the Tax-and-Spend Game. |
Economic Stability and Job Growth