Hi Aim Hier,
I agree that private business tends to be more efficient and, over the years, government (especially at the federal level) has gotten too large. I also agree that, eventually, the government needs to strive for balanced budgets and eliminating the deficit.
Right now, though, there is a lack of demand and a liquidity crisis. Individuals and businesses are sitting on cash. A lot of people I know who have jobs are overworked. My team at the bank where I work is short handed, but we can't get approval to hire any permanent workers.
I think the Republicans and Tea Party are focusing on a good issue (cutting spending / deficit), but at the wrong time.
I think it will push the unemployment/deflation cycle more if we reduce government right now and push government workers into unemployment and into competition for private sector jobs.
I think it will be less painful if the government waits a couple of years until the private sector comes back and the recession ends. Then, there will be plenty of time to slim down government before we have to worry about inflation.
