The public/private disconnect.
I got an email from the superintendent of the school district where my younger daughter goes to school talking about the impact of state budget funding cuts.
Now to be fair to this man he runs a school district that is heavily impacted by the whole Robin Hood fiasco that transfers money from so-called wealthy school districts to poorer school districts.
But with that said l was nonetheless struck by his email. The state funding cut is a big number, no question. But when you divide that number by the bigger number, the district’s total budget, it comes to six percent.
Since the recession started in 2008, virtually every American enterprise has found a way to cut at least six percent in expenses and still get the job done. And while the cuts were no doubt difficult, most businesses made them without whining.
But let a government enterprise have to cut six percent and the howling begins. And there in a nutshell is why the country is going broke. It’s the disconnect between economic reality in the private sector and economic fantasy in the public sector.
The only way to fix it is to shrink the public sector.