Why Spending Cuts Are Better That Tax Increases

Topics: Government spending, Tax, Unemployment Pages: 2 (637 words) Published: December 22, 2012
The simple truth about government spending is that it is misguided, inefficient, and dominated more by politics than an interest in the benefit of the country. Government spending by nature subsidizes an industry or business by giving it money it wasn’t earning in exchange for a service. This is bad because the government may not select the company that’s best for the job.

Consider the Obama administration’s decision to loan Solyndra, a Californian solar energy company, 535 million dollars. Obama readily agreed to give this company this incredible sum of money simply because the company promised to create a thousand new jobs. As a result of the government’s expensive investment, which was expected to create more jobs and move the economy to a more environmentally friendly future, the company went bankrupt within 2 years. This incident highlights the flaws of government spending. Notice that the government simply gave the company 525 million dollar on the grounds that they thought it would spend the money wisely. It is key to understand that the government is not a business. Its goal is not to make a profit. Instead of making companies compete to prove that they are the best candidates to receive government aid they simply give away money, something no private corporations will ever do, and something, as you see in the case of Solyndra, has high potential to waste the money of taxpayers.

Even worse than the government’s lack of interest in business are its actual interests. It is no secret that the dirty game of politics is the force that truly runs government. Not a sincere concern for the needs of the economy or the needs of the people but instead a concern for the needs of the political party. The case of Solyndra can also illustrate this. Many of the company’s major backers are also major fundraisers for Obama. There is reason to believe that this company as well as numerous other companies are receiving government subsidies and loans due to connection...
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