[andyt]

The way to reduce welfare spending is to do what Bill Clinton did. Have a healthy economy with jobs for everybody, then push those who won't (as opposed to can't) work off the welfare rolls. I was in the US at the time, and employees needed signs were everywhere. No excuse for being on welfare if you were able to work. Another thing that's helpful is having a national child care strategy, so parents can afford to take the jobs that are out there.

[Psudo]

andyt wrote:

The way to reduce welfare spending is to do what Bill Clinton did. Have a healthy economy with jobs for everybody

Until someone finds that "Have a healthy economy" button, I don't think Obama really has this option available.

[DrCaleb]

Psudo wrote:

andyt wrote:

The way to reduce welfare spending is to do what Bill Clinton did. Have a healthy economy with jobs for everybody

Until someone finds that "Have a healthy economy" button, I don't think Obama really has this option available.

http://www.staples.com/sbd/cre/marketin ... /faqs.html

[bootlegga]

Psudo wrote:

Government spending to contractors supports the economy in a way that neutralizes and reverses the economic cost of taxes. Government spending to contractors is also a minuscule fraction of the budget, and most of that is for military contractors. Defense (outside of R&D) and welfare spending are a bit like buying toilet paper -- some is necessary, but it's still money down the tubes.

The goal is selective spending for economic growth. Infrastructure spending makes the cut, and most of the rest doesn't.

I disagree - a decent-sized chunk of that money (like defence and welfare) comes back as taxes, such as income and sales taxes. Other parts of that money creates jobs because those people use it to pay for living expenses (food, transportation, utilities, etc). That job creation creates additional tax revenues, and so on.

[BartSimpson]

andyt wrote:

The way to reduce welfare spending is to do what Bill Clinton did. Have a healthy economy with jobs for everybody...

Oh, but you MUST share this amazing information with the White HOuse and Congress!

[Psudo]

Bootlegga, I don't know why you're tracking money as it leaves government ownership only to return to it again. Moving money to the private sector and back doesn't necessarily benefit the economy. Also, the fraction coming back is pretty small; the US has no federal sales tax, and income tax doesn't apply to government salaries and dividends.

You're right that government employees spending their salaries helps, though. My only skepticism of that is that not all government work itself benefits the economy. A lot of it fulfills legally mandated government duties, but things can be legally mandated without doing a bit of good for society, economic or otherwise.

I mentioned defense spending because the explosive parts of bombs and bullets wear out and break down far more quickly than other valuable goods. That's a lot of economic productivity going up in smoke in the end.