Saturday, June 6, 2015

Time For Government Functions To Be Outsourced

Everyday, we hear of Big Government failure at the local, state and federal levels as taxes are raised to fund government spending.  Clearly, Big Government is broken, which is a good reason we need to get back to the limited Constitutional government that our Founders intended.  Government, led by Socialist and RINO politicians has bitten off more than it can chew.  Clearly, as President Ronald Reagan always said, Government is not the solution to our problem, government is the problem".  Big Government grows at the expense of the Makers in society, the 50% of us that pay all income taxes and most other government taxes and fees.  As Socialists and RINOS confiscate more of our money to fund their Socialist Schemes, we have less to invest in new ventures and or to expand existing ones, or to make purchases that would stimulate the economy.    This is just Economics 101.

But now, we must look at bloated local, state and the federal governments to really ascertain what are the valid functions of government.  This Blogger is not a Libertarian.  However, I do see a much diminished role for government because it is pretty obvious that Big Government has failed on so many levels and our freedoms are threatened by government over reach.  However, once government is scaled back, there is absolutely no reason why various government functions can't be outsourced to private industry.  Who says government functions must be implemented by government union employees that are bankrupting our country. 

We absolutely should start with School Choice for all parents.  As long as it does not cost the taxpayer more money, why shouldn't parents be able to choose between public and private schools, by being given a voucher, basically the same money being spent now on public education per pupil, going to a school chosen by parents for their children, whether public or private.   The goal is a well educated populace, which certainly is not happening in many public schools, particularly in our inner cities.  There is nothing sacred about public schools, especially since today they have become bastions of left wing ideology and politically correct Secular thinking.  In essence, School Choice is just another form of Outsourcing. 

But we need to go beyond School Choice.  There are all sorts of government administrative functions that could be Outsourced to private companies to cut costs, avoid public employee unions and taxpayer pension liabilities.   This Blogger owns a Human Resource Outsourcing Company.   We work with very large firms managing global relocation for them and in the process deal with hundreds of millions of dollars of supplier and employee payments every year.  There is no reason we could not be providing similar services for government; though perhaps with completely different applications.   Though it will cost more, if off shoring is prohibited, the federal government could require that all services be provided from offices in the United States.  States could do the same related to Outsourced State Services; both to preserve jobs in the US, or the particular state.  

What is most important about all of this is that most private sector service jobs are not unionized.  Though we provide typical medical and other benefits that are common in private industry, most companies implement a 401K plan, rather than a defined pension plan, so in Outsourcing government services, the taxpayer pension liability goes away.   There are thousands of companies in the United States experienced at Outsourcing all sorts of services.  Even if these companies were permitted to make a 6 - 8% profit margin, that will be taxed, no doubt the cost to the taxpayer would be less because companies implement efficiencies that never happen in government.  And, if private companies fail, they can be FIRED and replaced with other companies that will succeed, which again never happens in government. 

I am well aware that Socialists in office would fight the notion of Outsourcing tooth and nail because they are owned lock stock and barrel by the public employee unions; but real Republicans, should be pushing this concept at ever turn.  Local, State and the Federal Government face billions of dollars in unfunded liability for public employee pensions, which if they go on business us usual, will bankrupt our country.  Outsourcing Government Services is a way to stem the tide.  Now we need politicians with the guts to advance the concept with new out of the box thinking.   We will never see it from Socialists and RINOS; but just maybe there are enough real Republicans in office, that understand and support free market capitalism,  to get the job done.   Obviously, with all the failure we see in government today, we need radical change to improve government services, instead of more of the same tax, borrow and spend Big Government policies.   Outsourcing is the solution.    

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