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If your household is over budget, you can address that problem either by spending less or by earning more income. It is tempting to fall into the trap of thinking that by analogy, the government can address its budget problems either by spending less or by raising taxes. But the analogy fails because raising taxes is not like earning more income; it’s more like visiting the ATM.

The government is an agent of the taxpayers. Raising taxes to pay for government spending depletes our assets just as visiting the ATM to pay for household spending depletes our assets. That’s not at all like earning income, which adds to our assets.

So insofar as the supercommittee relies on tax increases to address issues of “fiscal irresponsibility”, it will have failed.

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1) Several commenters have pointed out that the conflict in Wisconsin is not (directly) about wages, benefits or working conditions, but rather about collective bargaining. This seems to me to be a distinction without a difference; nobody would care about collective bargaining unless they expected it to affect wages, benefits, and/or working conditions. The point stands that workers who are very upset about losing their collective bargaining rights must expect to use those rights to achieve above-market compensation.

2) Jim from Wisconsin made a comment, and I made a reply, that I think bear highlighting here. Jim from Wisconsin said:

Futhermore, isn’t the idea in private business that if you want the best and the brightest, you pay them well? Don’t we want our Government programs run effectively and efficiently? Seems to work in the private sector, so why can’t this apply to public sector as well?

To which I replied:

The problem with this is that every “best and brightest” who is hired by the public sector is unavailable to the private sector, so it’s not at all clear that we WANT the best and brightest in the public sector. To take an extreme case, I don’t want the best Silicon Valley engineers tempted to work as high school teachers; I’d rather have them pushing the limits of technology. From the point of view of economic efficiency, this is the one and only reason why public sector employees ought NOT be overpaid. (It’s also a reason why private sector employees ought not be overpaid, but there’s generally less threat of that happening because of the private-sector profit motive.) It’s the one and only reason not to overpay public employees — but it is a good and sufficient reason.

I want to emphasize this. The main reason to hold down public salaries/benefits is not to save money for the taxpayers. I have no a priori reason to care any more (or less) about the taxpayers than I do about the public employees themselves. Instead, the main reason to hold down public salaries/benefits is to avoid drawing the “best and the brightest” away from more productive careers into public service.

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I’ve realized that for some readers that wording might be subtracting more clarity than it’s adding. It is, however, correct as originally stated.

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I was, I think, six years old at the time, and my question was this: If you’re traveling at 50 miles an hour at 1:00, and you’re traveling at 70 miles an hour at 2:00, must there be a time in between when you’re traveling exactly 60 miles an hour?

What made this question intelligent—and probably what made it incomprehensible to my parents—was that I was very keen to distinguish it from the question of whether your speedometer would have to pass through the 60-mile-an-hour mark. It seemed clear to me that the answer to that one was yes—that even if your true velocity could somehow skip directly from 50 to 70, the speedometer needle, in the course of whipping around from one reading to the other, would have to pass through the midpoint.

I quite vividly remember worrying that my question about your speed would be misinterpreted as a question about your speedometer, a question to which I thought the answer was obvious and therefore could only be asked by a very stupid person—a very stupid person for whom I did not wish to be mistaken. Therefore I prefaced the question with a long discourse on how it was thoroughly obvious to me that if your speedometer reads 50 miles an hour at one time and 70 miles an hour at another, then surely it must pass through 60 on the way, but that this was not not not not not the question I was about to ask, which concerned your actual speed and not the measurement thereof. By the time I got around to formulating the question itself, my parents (or at least my father; I don’t remember whether my mother was present) had quite understandably given up on figuring out what I was trying to get at.

In retrospect, though, what I was trying to get at was the distinction between the Intermediate Value Theorem, which applies to continuous functions (like your speedometer reading) and Darboux’s Theorem, which applies to derivatives (like your velocity). And I had exactly the right intuition, which is that the Intermediate Value Theorem is easy but Darboux’s Theorem is (comparatively) difficult. In other words, it’s pretty much obvious that the speedometer has to pass through 60 but not so obvious that your actual speed has to pass through 60, although in fact it’s true.

Perhaps a much more intelligent (or obstreperous) child would have questioned the continuity of the speedometer reading, or the continuity of space and/or time itself.

What is the most intelligent question you can remember asking as a child? Did you get a good answer?

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But a moment ago, I hit a wrong button and permanently deleted 200 spam comments (all generated within the past few hours!) before I’d looked at them. Statistically, there was probably nothing legit in there anyway. But if by chance I threw your baby out with my bathwater, I do apologize — and please try again.

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(Larger version here.)

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