Solving state's financial woes a simple matter

The Washington State Legislative 2011 special session ended without fanfare and without solving any of the budget issues. 

The right side of the aisle wants to deal with the cause of the financial problems and the left side's chosen solution is to threaten cuts to essential government services, primarily education, police and fire.

Solving the State's financial woes is as simple as balancing your check book. That is, you must have more income than expense.

Government's sole source of income is private sector businesses and their workers. So the best way to increase government income is to increase the number of businesses and their workers.

The second way toward solving the budget problem is to reduce government expense. Privatization of government services would do both.

It would increase income because there would be more private sector businesses and employees to pay taxes while reducing government payroll expense.

The cost for privatized government-like services is less because private companies in a competitive market are proven to be more efficient than government. That results in the reduction of the cost of these services and provides better services.

Every private sector business knows it cannot survive in a competitive market without being efficient. Every private sector employee knows his or her job depends on efficiency.

Government has no competition, therefore has no incentive to be efficient. Government can and does hire more people to get the job done. 

Government worker pay comes from tax revenue. Therefore, payroll deductions on these workers are only a reduction in tax revenue received, not a contribution to the tax base or entitlements.

Where the health of the economy is concerned, government size does matter. Every new government employee increases private sector taxes, shrinking the economy.

That means one less person to pay taxes to government, one more payroll expense for government to pay and, eventually, one more unfunded retirement entitlement to pay.

Dale Hellewell

Royal City