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To Pay for Trump Tax Cuts, House GOP Floats Plan to Slash Benefits for the Poor and Working Class
(www.propublica.org)
this post was submitted on 02 Feb 2025
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politics
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Balancing the budget is a good metric when its rooted in material needs.
When individual sectors are carved up into privately administered and obscured subcomponents, its difficult, true. But when you've got a large vertically integrated conglomerate, it is comparatively easy. Walmart, Amazon, and Exxon all managed to organize administration of an end-to-end supply chain where they can claim profit at every step of the economic process.
We've seen more transparent and well-integrated economies apply these tools holistically. Allende's Chile implemented Project Cybersyn with enough early success that the incoming Pinochet government decided to obliterate the system rather than admit it's effectiveness. Deng's China and Sankara's Burkino Faso and Castro's Cuba all managed to integrate their domestic economies in a central model that boosted productivity and dramatically reduced poverty.
The idea of austerity is always rooted in the theory of private investment as a galvanizing force for growth. But even when your country is relatively small, the investment you can engineer through public sector collaboration regularly outpaces the growth you can obtain from an injection of overseas capital. When your country is large and diverse, public sector programs that integrate regions - most notably the shipping lanes and rail networks and canal projects and data pipelines drastically reduced cost of transit during the last 300 years - promise enormous returns for relatively small investments.
Gotta give credit to modern logistics where it is due. Any austerity program that eats away at our ability to cheaply and easily transfer materials and labor will cost more than it yields in the long run.