The Government is merely a servant -- merely a temporary servant; it cannot be its prerogative to determine what is right and what is wrong, and decide who is a patriot and who isn't. Its function is to obey orders, not originate them. - Mark Twain

In For A Penny, In For A Hundred Trillion Pennies

by Hal_10000

This can’t be right, can it?

Governors of five U.S. states urged the federal government to provide $1 trillion in aid to the country’s 50 states to help pay for education, welfare and infrastructure as states struggle with steep budget deficits amid a deepening recession.

The governors of New York, New Jersey, Massachusetts, Ohio and Wisconsin—all Democrats—said the initiative for the two-year aid package was backed by other governors and follows a meeting in December where governors called on President-elect Barack Obama to help them maintain services in the face of slumping revenues.

Gov. David Paterson of New York said 43 states now have budget deficits totaling some $100 billion as tax revenues plunge.

“It’s clear that the federal government needs to step in and jump-start the economy,” said Gov. Deval Patrick of Massachusetts.

The latest package calls for $350 billion to create jobs by building or repairing roads, bridges and other public works; $250 billion to maintain education; and another $250 billion in “counter-cyclical” spending such as extending unemployment benefits and food stamps, which are typically a responsibility of the states.

The remainder would be used to fund middle-class tax cuts, stimulate the embattled housing market, and stem the tide of home foreclosures through a loan-modification program.

For that amount of money, the feds could just buy the state governments, sack their reckless irresponsible governors and legislature and run the whole shebang themselves.  It’s funny—the supposed bad economy that’s causing these deficits in the state budgets hasn’t affected states like Texas, that budgeted responsibly.

We have yet to see a stimulus bill emerge but I’m already growing sick of this non-stop Keynsian bullshit.  Even the supposed “tax cuts” have a Keynsian lilt to them.  We all—well, those who paid attention—saw how well the “we’re all Keynsians now” economic policies of Nixon and Carter worked.  Hope will not Change the basic fundamental principle that you don’t stimulate the economy by racking up massive debts.

Look, I don’t like the recession any more than the next guy—I’ve got a house on the market and bills to pay.  But an orgy of spending is not going to save us.  At best, it will do nothing.  At worst, it will plunge us into an even worse situation.

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