firehand

Prometheus 6   

Do not make the mistake of thinking that because my conclusion is the same as another person's that my reasoning is the same

July 28, 2003

 

Gee. Ya think?

Red Ink in States Beginning to Hurt Economic Recovery
By LOUIS UCHITELLE
Over the past two years, states have gradually cut between $20 billion and $40 billion from their spending, and that makes them a net minus for the national economy.


First of all, the idea of calling (let's split the difference here for discussion's sake) a $30 billion reduction over two years "gradual" is kind of loopy. The major thing, though, is to push the recognition that Federal tax and budgetary policy doesn't play out in a vacuum.

For instance, "Red States" on the whole are consumers, not producers, of Federal tax dollars. They are selling out their own children by backing those who have created this fiscal debacle and I doubt they know it. How can their representatives send back all that nice pork after they've starved the pig to death?

Because the Federal government, even in its current state, has vastly more purchasing power than any given state, it can nogotiate much better purchasing arrangements. If it had the will to. By failing to do so, it increases overall government spending every time it reduces Federal spending or spends inappropriately. The problem of Federal spending is more "how" than "how much."

posted by Prometheus 6 at 7/28/2003 08:48:31 AM |

Posted by P6 at July 28, 2003 08:48 AM | Trackback URL: http://www.prometheus6.org/mt/mt-tb.cgi/1409
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