Famous words from former NH Gov. Thompson. Unfortunately, it seems that most states have ignored these wise words (which most Liberals hate because it draws them up short against a basic law of economics). And now they wonder why their budgets are so out of control (like California and New York)?
And with this Presidential Administration and the RINOs (actually, I like Michelle Malkin’s new take on RINOs -> Barack Obama Republicans that give up on Republican ideals to ingratiate themselves with the new administration. Also, B.O. can stand for Bend Over too….sigh…), this means that profligate state leadership in one area of the country (again, NY, CA, and unfortunately, NH) is going to get bailed out by the Bailout bill.
Talk about rewarding mediocrity! And here’s why:
And people around here locally (I’m on my town’s Budget Committee) wonder why I am always ranting "why should government always get more than the average family????". And no one can give me a cogent, responsible, and logical answer to persuade me otherwise.
Politicians are addicted to money: first for their campaigns, and then to spend (without ever seemingly figuring out that boom times are followed by busts, and then are so clueless when left holding the empty bag).
The story that accompanies the chart:
President Obama has announced that a big check to state governments is part of his stimulus spending plan in order to "save the public sector jobs of teachers, police officers, firefighters, and others who provide vital services." But the states aren’t innocent victims. Their revenues have collapsed of late, but the main reason so many states are broke today is because lawmakers thought the days of living well would last forever.
The state spending binge of the last five years has been almost unprecedented in American history. (See nearby chart.) Since 1998 state and local budgets have nearly doubled to $2 trillion, according to the Census Bureau. State and local expenditures rose 34% from 2003-2007 compared to inflation of 19% and population growth of 5%. They also loaded up on debt, which doubled to $2.23 trillion in 2008 from $1.14 trillion a decade earlier. This doesn’t include nearly $1.5 trillion in unfunded health and pension liabilities.
The states with the biggest deficits tend to be the most profligate. California has by far the biggest gap — $40 billion — thanks in part to a 40% increase in spending over the last five years. Arizona, Florida and Nevada also have deficits of roughly 20% of their operating budget; each of these states allowed their expenditures to grow by more than 50% faster than the average state budget over the last decade…
…A federal bailout for these distressed states means redistributing income to these big spenders from the most fiscally responsible states.
And that is my biggest concern – this promotes irresponsibility on behalf of politicians. Why do the responsible thing when the consequences of bad decisions are stuffed under rug and covered up.
Ask yourself – Is this the type of government you really, really want? People overspend here, there, and everywhere across the nation except where you are, but you are on the hook for it? Isn’t that the ultimate of taxation without representation (e.g., someone in a frugal state has no representation or recourse to stop that spending in CA that hits their wallet). With no consequences?
Isn’t this a HUGE indictment that BIG GOVERNMENT doesn’t work, that you cannot trust them to handle our money well? Government that is no longer responsible to those that fund it? Big Government is not efficient, it does not work, and even with more and more money, cannot EVER meet all of the needs of its citizens.
Mike, does this not persuade you at all of your stance that we here in central NH SHOULD pay for everyone else everywhere else?
