Anyone who has actually run a business knows the economics of cutting costs. Some can be done around the edges. However, real cost cuts come from reducing the number of employees and total compensation. In business it is called "Right Sizing."

Businesses across the country are right sizing by not hiring. Faced with uncertainty in tax policy, healthcare costs and trade policy, business has put on the brakes. In fact, small business start ups have reached an all time low.

This right sizing fervor has not affected Federal Government.

Since 2007, the number of Transportation Department employees with compensation of $170,000.00 has skyrocketed from 1 (ONE) to over 1,600.

During the same period, the number of Defense Department employees with pay in excess of $150,000.00 has grown from 1,600 to more than 10,000.

This Federal Employee EXPLOSION occurred while the Democrats controlled both Houses of Congress and had a firm grip on the appropriating process.

The average Federal employee now receives compensation almost TWICE that of an employee in the private sector doing an equivalent job.

Faced with these statistics and another record setting deficit in July, the Democrat BIG GOVERNMENT SPENDING MACHINE kept rolling on. This time they caved to the Teachers Union and passed another $30 BILLION bail out.

As President Reagan often pointed out, the problem is not the quality and motivation of Federal employees. The problem is the uncontrolled growth of the Federal bureaucracy.

Our Federal government needs to learn from the private sector. The way to cut spending is to "Right Size" the Federal government. Let's start with a hiring and salary freeze.

The most important indicator for Republicans is the generic ballot. When asked if they will vote for a Republican or Democrat candidate for the House, Republicans come out on top by almost 10 points. Republican voters are also winning on the intensity scale with a stronger inclination to vote.

This is why Republican Senate candidates in three key states – Pennsylvania, Ohio and California – have suddenly jumped into the lead over their Democrat opponents.

The theme coming out of the White House is that Republicans want to go back to their old ways while Democrats will take us forward……..forward over the cliff ? ? - keep in mind that the Democrats have already, in just the last nine months, added one trillion dollars to the Federal deficit - . They have clamped a strangle hold on job growth with threats of higher corporate taxes, cap and trade legislation and higher healthcare costs.

At the same time, two newly elected Republican Governors are giving the nation lessons in FISCAL LEADERSHIP. New Jersey's Governor, CHRIS CHRISTY is successfully fighting the Unions to balance the State budget. Virginia's Governor, BOB McDONNELL has turned the $ 1.8 Billion deficit inherited from a Democrat administration into a $ 200 Million surplus without a tax increase.

So, I'll place my bet on Gibbs' problematic, if unique, veracity against Pelosi's political interchange.