Viewpoint: When will our legislators end their spending spree at state Capitol?

Alice P.
02/25/2010 9:07 AM

Michelle V., with all due respect, you are so very wrong. First, about California: no, it is not runaway spending that turned California into a basket case. California used to have the finest public education system, the finest public universities in the nation. But, Californians can introduce and vote on initiatives, like Prop 13, which reduced taxes, and they can vote for unfunded mandates. I'm talking about ordinary citizens, like you and me, introducing propositions. It is because Californians reduced taxes that the state went nearly bankrupt, coupled with a state legislature controlled by the conservative minority (think filibusters - just like the current situation in the US Senate) that is hamstrung when it comes to increasing state revenues or cutting pet projects. The fact is, RM M. is right - spending by the state is NOT the same a spending by a family. If individuals and businesses will not or cannot pump money into the economy, then the state has to, or we go into a depression, just like in the 1930s. Oh, and families sometimes do borrow to invest in the future - think of college loans. Is it better to eschew borrowing and to work in a minimum wage job all your life, or is it better to borrow for college and pay back those loans while working as a physician?

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michelle v.
02/25/2010 8:30 AM

The justification of the liberal mindset never ceases to amuse and frighten me. Above it is suggested that because interest rates are so low, our state and city govts should run out, rack up debt, regardless of how frivolous the expenditure in times of fiscal crisis and then worry about paying it back later. That would be the equivalent of me convincing myself i should go out and buy that big gigantic mansion, a new car and a shopping spree at the mall, all on credit, because the interests rates are so low. Hey, i'm creating jobs right? well, that is insanity. Any financial advisor would tell you--STOP SPENDING. No matter how "noble" the project or great the desires, when the economy stinks on ice, you need to cut the spending. Its called being a responsible adult. Unfortunately with the childish mentality of our elected representation, they have no fiscal sanity and so we will continue to dig this fiscal hole until a true crisis happens. California is on the verge of collapse because its elected officials have not the spine to tell their constituents "NO, we dont have the money to fund your pet project". As a result, they are issuing IOU's instead of tax refunds and payment obligations, and their bond ratings are in the tank. They are irresponsible, and in the end, will be looking to us here in minnesota and the rest of the country to bail them out. We are a country that is living beyond its means-borrowing to do so. Its happening on the local, state and federal levels. Reckoning day is coming. When countries like greece start to collaspe (its teetering right now) the domino effect will cause stress throughout the world. Countries like china, have already started to think twice about our ability to pay our debts, and said so publicly. Our bank (china)will come calling for payment and how much freedom will be lost because we cannot pay the money back? As a nation, we have 106 trillion dollars in unfunded liabilities. Our federal tax debt per citizen, according to the USdebtclock.org, is almost $400,000, EACH, when you combine the federal deficit WITH the unfunded liabilities. I dont know about you, but i dont have that kind of money stashed away. Our state is running a deficit, our cities are running deficits. Exactly WHEN are we, as responsible human beings are going to wake up and understand, we live above our means? Our poorest of poor is wealthy in comparison to most of the rest of the world. Our cost of production (due to unions and regulations) is too high in comparision to the world, that is why we are not longer a country that produces much of anything. The president says we will increase exports. Exactly how, when our products are too expensive? Instead, we consume. And consume. And rack up debt, and our politicians encourage that behavior. Excuse me for being more than a little critical of a philosophy that passes the economic buck to generations father down the line. It is generational theft we are committing. Instead of being ashamed, you have politicians like swails, bunn and saltzman proudly prancing around, toting their intellectual superiority over the ignorant masses. Well, i may not have a PhD, but i do have a bachelors degree in science, and common sense to boot. (something they seem to lack). We are creating a debt that we are unable to pay back. That ultimately creates a situation where you become a slave to that debt. Unlike these spineless politicians, i would rather take the responsible and noble road of personal suffering now rather than pass on an enslaving debt to my children and grandchildren. Do not tell me we can grow out of this, we cannot. We simply do not have the competitive industrial edge under the current leadership. There is not enough money in the entire world to pay the 106 trillion dollar obligation we have looming. Yes, the day of reckoning is coming, I just hope that we have more responsible people in office that are willing to do the hard, but RIGHT thing.

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RM M.
02/24/2010 7:11 PM

Actually, most economists I'm reading right now (both liberal and conservative politically) are saying that this is the BEST time to float a large bonding bill. Why? Because the interest rate on debt will be very low, and infrastructure projects folded into these bonding bills create jobs. The building projects you complain about in this bill will actually employ some of your neighbors. As the private sector is rapidly deleveraging the ONLY way to prevent the recession from being worse is for government to leverage up (to balance the deleveraging), as was done by the stimulus bill at the federal level. This is depression economics 101. Without the stimulus we'd be looking at 25-30% unemployment/underemployment vs. the 20% we now have (that's bad enough, by my reckoning). The slightly larger bonding bill is a stimulus; the only problem with it is that it should be even bigger. This is the year to float a larger bonding bill, no doubt about it. We can take advantage of historically low interest rates and low bids on contracts (from contractors who are begging for work) to get great deals on infrastructure projects -- a win-win for the taxpayer, our state infrastructure rebuilding, and those who need employment during these tough times. Thanks to Julie, Kathy, and Marsha for recognizing this opportunity and acting to do well and do right at the same time.

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Michael L.
02/24/2010 1:58 PM

Nice republican talking points there, Laurie. Perhaps you should wait until a bill actually makes its way to T-Paw.

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