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What to Cut Next

para_dimz Wrote: Mar 18, 2013 9:08 AM
Privitization is cost shifting. It amounts to a tax increase in the form of user fees with no commesurate reduction in actual tax liabilities. Also, privitization tends to be more expensive because these efforts are devoid of the one thing that private enterprise lives with to control costs; competition. After the initial competition for the government contractbid a company is awarded a monopoly after which costs tend to rise, service tends to drop.

For supporters of limited government, there is some good news coming from Washington. On entitlement spending, House Budget Committee Chairman Paul Ryan’s new spending plan would reform Medicare and Medicaid, repeal Obamacare, and balance the budget over 10 years.

And on the discretionary side of the federal budget, the recent sequester will, in theory, trim about $1 trillion from projected spending over the next decade, and that comes on top of similar-sized cuts from the budget caps enacted in 2011. Those cuts are only a fraction of the nearly $50 trillion that the federal government is expected to spend...