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Category:Brazilian male writersThe Next Big Thing in State and Local Government (Part 2)
Last time, I wrote about the “next big thing” in state and local government and its implications for consultants. I also mentioned the role of the federal government in playing a major role in this. But how can we expect state and local governments to upgrade their technology if they are facing a massive budget crisis? How can we expect the federal government to play a major role when they are facing a massive budget crisis? What might the answer be?
First, let’s look at how federal and state government funding are structured, in a word – federalism.
Here, as you can see from the graph, the role of the federal government in funding state and local governments has been declining since the 1970s. What’s the reason for this decline? You’ll recall that I’ve been talking about the economic globalization that’s been under way since the 1970s. States and localities have fewer and fewer resources to use in “protectionist” ways (which, in economic terms, is the definition of a “protectionist” government).
Here’s another way to think about what’s happened. Let’s say that you want to make a product that doesn’t work well. One of the costs of trying to make a better product is that it costs money to make the improvements. So, how do you pay for the improvement? As a product grows in popularity, the cost of the product to the company that made it declines. Now, consider that state and local governments are very big employers in the U.S., and they need employees to run their governments. This means that be359ba680
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