Cut backs

As the President puts forth his plan to cut government departments, I am reminded of our little town Hastings and what happened during the housing bust of a few years ago. There were many local contractors who either cut back or went out of business during this time. The city has 6 people who inspect new construction and none of those were laid off during these rough years. Hastings is a microcosm of the country as a whole since during down times government employees are usually secure in their jobs. In the past federal departments referred to a cut as instead of growing by 5% they would only grow by 4% and this was called a one percent cut. It was a commonly referred to practice of always making sure you spent all of you money so you would not be subject to less money the next year. Supposedly this is about to change in the Trump administration but that remains to be seen. I have heard all of my adult life promises to cut the fat from government but I have yet to see that happen. I do remember when Clinton revamped welfare and the cries were that poor women and child would be tossed out into the streets but nothing came of that and when the dust settled people found a way. In 1978 California passed a large tax cut called Prop 13 and predictions abounded about the devastating effects that would follow. On June 6th, 1978, nearly two-thirds of California's voters passed Proposition 13, reducing property tax rates on homes, businesses and farms by about 57% After this cities cut back and absorbed the shock and then things just continued along and the state grew at a rapid rate over the next 20 years. There is usually no way to predict in advance how cut backs will work. I suppose you have to pass it first and then figure out what will happen.