The rise of liberal-nomics…and the death of Reaganomics?
Here in Maryland, Democrat governor Martin O’Malley is on the loose and taxpayers are fearing for their wallets. Brian Griffiths at Red Maryland has the lowdown on the latest tax-and-spend O’Malleynomics plan–”spending lots of money to save less money” under the guise of energy reform:
O’Malley’s energy plan is just another block in the giant game of Jenga known as O’Malleynomics. Using government in whatever means necessary in order to raise taxes, raise fees, and grow the size of government at the expense of Maryland’s working and middle class families. while attempting to further control their behavior. If O’Malley was truly serious about reducing power consumption and improving the environment, there are alternative methods that produce greater long-term stability than carbon trading and by artificially inflating the price of power. And yes, that does mean unclogging the pipeline to allow for the construction of wind farms in Western Maryland, and the consideration of the construction of new nuclear power facilities.
Once again, O’Malley is putting politics ahead of people, and THAT friends may be the true keystone of O’Malleynomics.
In New York, unreality-based Spitzer-nomics is at work. George Marlin at the NYPost reports:
Instead of announcing “the days of wine and roses” are over; instead of declaring a fiscal state of emergency and calling for across-the-board spending cuts and a hiring freeze, Spitzer proposed increases in state spending.
The governor’s speech, which reads like a dry brief composed by a committee of pedantic lawyers, is devoid of reality…
… * Spitzer wants to spend $1 billion to revitalize upstate New York, claiming increased government spending “for investing in business, in infrastructure needed to create shovel-ready sites and in agribusiness” will turn the tide in the economically depressed region.
Spitzer huge infusions of state dollars will have little impact unless and until upstate’s inequitable property-tax levies are reduced. And those are driven by local spending that Albany mandates but doesn’t fund - programs that consume up to 80 percent of property-tax revenues in many Upstate counties.
Unfunded mandates must be eliminated if the region is to be economically viable.
* Spitzer also wants to spend more on education, health care for children, housing and infrastructure -all of which he believes can be funded without raising taxes.
The United States is in a recession. It’s likely that New York will be hit harder and take longer to recover from the economic downturn than the rest of the nation. Spitzer must adjust his budget to cope with this reality.
If he doesn’t, his only alternative will be to raise taxes to finance his spending schemes. If that happens, expect even greater job losses, and thus declines in population and in tax revenues.
It’s no wonder that the top political worry of financial advisers is a Democrat in the White House:
Nothing worries financial advisers more than the prospect of a Democrat’s being elected president in November, according to a quarterly poll by Brinker Capital Inc.
The fourth-quarter edition of the Brinker Barometer, which polled 236 advisers in December, found that 22% indicated that a “Democrat in the White House” worried them more than all other economic or geopolitical concerns.
Rounding out the list of concerns was “global unrest” (15%), “U.S. economic growth” (15%), “a terrorist attack” (13%) and “a recession” (13%).
When asked what their greatest tax concern would be under a Democratic administration, 81% of advisers cited a potential increase in the capital gains tax, an income tax increase and heavier taxes on dividends.
On the other side of the aisle, alas, James Pethokoukis warns about the death of Reaganomics:
Mitt Romney wants government to spend more money on basic scientific research. Mike Huckabee wants to create a prevention-based healthcare system. John McCain advocates a “wage insurance” program for workers. Fred Thompson wants to slash projected increases in Social Security payments.
Pethokoukis zeroes in on McCain, concluding that “If John McCain wins tonight’s presidential primary in Michigan—he’s currently neck and neck with Romney—the victory could well propel him to the GOP nomination and put a new brand of economic policy on the Republican agenda.”
And “new” does not equal better.
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By whatever name it’s called, when government bureaucracy is involved it becomes contrived, controlled and corrupt.
And don’t you love too how the privately owned Federal Reserve, that organ which is the epicenter of our economy, tweaks and tunes its gauges (money supply and %) in order to influence markets? You know the Fed? That entity that’s owned by the banking industry executives? Sure, that entity that loans money to banks and the government at prime (that margin they earn) from every freaking dollar printed, loaned and in circulation? We’re owned lock, stock and barrel by the bankers…….
Nothing to see here folks. Keep moving on!
…And rounding out the bunch is NJ’s Governor Corzine and his 50% toll increase to minimize NJ’s debt.
The emphasis should be the reason businesses are fleeing america is the over regulation and taxation. that is why jobs are gone in Michigan and elsewhere. taxation by the local governments. elect a dem and you will see your jobs flee outside the country.
kind of a mcpain prophecy realized. hey? also, the huckster is right up there with the tax and spend folks. i cannot for the life of me understand these two and their appeal to conservatives.
now it is elect any politician and you will see job loss and economy decline. wow.. ?? what to do and way to go Republicans!
Actually it is the Fed Funds Rate, not the Prime rate, used for short-term interbank loans. And as far as I know, the Treasury is the entity responsible for providing non-tax based liquidity for the federal gov’t, not the Federal Reserve.
And did you ever hear of the international money markets? Just a small market that determines current interest rates based on a little thing called supply and demand.
thanks in_awe, you got it right! so many people believe that Ron Paul rant it is scary.
It’s amazing a lib NEVER tries to fix budget problems by cutting spending. Always the citizens must pay for the government’s ineptitude. Thank goodness libs know how to spend my money better than I do! Thanks MO’M!
Here’s an article that will fit well with this theme:
http://apnews.myway.com/article/20080115/D8U6725G2.html
The gvt already gets 40-60 cents “profit” per gallon of gas sold compared with the oil companies’ 11, so why not add another 40 to the pile to make it an even buck. You can bet your butt I’m calling my reps and senators.
The market alway’s get’s a bad taste in it’s mouth at the prospect of Democrat President or Democrat controlled Congress and rightfully so.Reaganomic’s or Voodo Economic’s as it has been demonized by the left has it’s principle’s set in the right place. Let people keep their hard earned cash and they will spend more of it which in turn reap’s a larger return for the government’s bottom line a win win for the American people and the economy, it’s been proven it is no longer a theory. How many times have people went to purchase a product and found something just a little bit nicer, just a little bit better quality and spent 20 or 30 dollars more for something that they were’nt going to spend, I have and I’m sure I’m not the only one. The Democrat’s tax an spend strategy has never and will never work on any level, local, state or federal. The socialist agenda is to destroy the middle class and the best way to do that is tax the living sh!t out of them and decrease their ability to afford product’s and service’s and with some Republican candidates abandoning Reagan’s Principal’s their starting to look alot like Democrat tax and spender’s.
hell, MD looks like a paradise compared to NJ.
oh Michelle, you forgot to mention that O’Malley’s approval ratings are lower than Bush’s.
Can someone help me understand… why is this included under the “Death of Reaganomics” heading?
My understanding is that Social Security is underfunded (not enough taxpayer base with babyboomers retiring) and the money is being raided by Congress to pay for other crap. Isn’t Social Security projected to go into the red in 2014?
So… even my wife understands that if you are going to have a shortfall, you need to increase inflows and/or reduce outflows.
Am I wrong in interpreting this as Fred attempting to balance the Social Security money flows?
How is this NOT Reaganesque?
Please help me understand…
Houston, we have a problem. A BIG problem. And it’s Liberals.
Just thought I’d muse out loud a little bit… The article reminded me how little I know of economics, how little I was taught in school, or to be fair, by my parents. I’m wondering if in the presence of an educational vaccuum, young conservatives are getting their financial education from the media and lender marketing. The Dem mandate of “raise minimum wage, we’re all entitled to it all” and credit card commercials are all I hear in the media. So basically all I have to go by is my strong belief in America being the land of individual opportunity, personal responsibility, and staying as far away from debt as humanly possible. Perhaps the key to a fiscally conservative future lies in education of the next generation by those who know their stuff.
I once complained to the Dean of Students at the private university I attended that I would be graduating without having ever been taught how to balance my checkbook or keep my personal finances, and his response was that the university would never be offering anything like that because “what do you think this is, a vo-tech?” Of course, those should have been things I learned long before I ever left home for college.
I know greed and stupidity will always be with us, but again, I’m just musing… Teach us, o wise ones!
This is the one thing that needs to be revived and sadly, everybody’s forgotten. It’s too easy for politicians to suck up to the dino media–which hasn’t seen an entitlement or tax hike it didn’t like–and to promise bennies in order to get this or that demographic’s vote. Meanwhile, we’re all getting taxed to death on the state and federal level, with threats to jack ‘em up even more.
High taxes and excessive regulation get in the way of business and ultimately, jobs. If I owned a business, why should I keep it open in the U.S. where I have to pay out the wazoo for overhead when I can get the same work done elsewhere for a lot less? The Dummycrats have pandered too long to the troglodytes who hate those who are more successful than they are and have been funded too long by those whose money has long since gone “global.” Sadly, the GOP isn’t a whole lot better.
Yep there is a very serious problem. It boggles the mind how politicians can’t run out of ideas to “raise” revenues but never figure out how to stop coming up with ways to spend money.
The has to be a way to turn the tide on the mentality in this country that somebody else is or should pay for all the the services we want, expect, or damand. We simply can’t have everything.
Just imagine the staggering expense of all the “gifts” Hitlary wants to give people or Obama’s socialist agenda.
Bottom line is simple…
CUT SPENDING!!!!!!!!!!!!!!!!!!!
This is a great time of year to help our children clearly understand the connection between government largess, income taxes and their part-time wages.
Last night I sat down with my daughter and reviewed her W2 with her as part of a larger discussion about political campaign promises and the fundamental differences between liberals and conservatives when it comes to her economic freedom.
Let’s just say that her commitment to conservative principles was strengthened…just wish I could say the same for many Republican office holders…
The way things are going in the Fed and state budgets, how are the citizens going to pay for a democratic President? Lord, the whole country is going to end up on welfare and food stamps, after the “for the children” tax increases.
It just baffles me that anyone would choose to live in such a state if they could live elsewhere where the state gov. is less hostile to their wallets.
In order to save the planet from carbon emmisions, you should go out and buy a Prius. The Prius comes fully preloaded with enough carbon already emmited by the time you buy it that it will take you 10 years of driving 12,000 miles a year in order to make up the difference than if you spent the money on a Hummer H1.
So, next time you see one of those snobbish loser eco-terrorist prius driving slimeballs, just remember that they are in fact the ones killing the planet.
Another nice peice of the eco-terrorist pie comes in the form of travel expenses. These people love the environment so much that they gush out massive amounts of carbon in the form of travel, including airplanes travel, ship travel, private jets, driving cross country and inter-country to see the wonderful world they are saving for our children.
In other news, another of natures pristine landscapes is decimated by humans. They come in large numbers and decimate the landscape. These are the scientists and eco-warriors, the only people who would ever bother coming out here in the first place. Scientists and eco-warriors destroy the very pristine nature they claim to care so much about and demand that we save for our children.
I contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.
-Winston Churchill
Don’t worry, here in CA, we have a $14 BILLION shortfall.
Gee, I wonder how they’ll make up that gap?
I did this story too, I heard Maryland’s sales tax went up one % too. Sucks for Maryland, but as long as the Democrats and Fast Eddie Rendell aren’t complete morons, they’ll keep our taxes low in PA, and NY, NJ and MD will come to PA even more now to buy stuff here in order to escape taxes in NY NJ and MD. Now if we could just get Jersey to annex Philly, PA would be perfect…
30Pieces #3……
Hi, how are yuh? Thanks for posting on our sorry state of affairs here in NJ. It’s worth mentioning that Corzine wants to BORROW 40 billion to pay of the 14 billion deficit in our state.
I urge you all to read Pat Buchanan’s column “Subprime Nation”, it’s scary but unfortunately true. Link to it from Drudge.
BlameAmericaLast -
At least you have a governor who has some cojoenes and has proposed an across the board 10% cut in all state agencies.
Tax-and-spend is more conservative than borrow-and-spend.
Tax-and-spend is limited by how much you can squeeze from the taxpayers; but borrow-and-spend, aka supply side, Reaganomics, voodoo economics, has no limit on government spending as tax breaks for the rich grow the economy so much that astronomical spending becomes the norm.
We’ve already got the highest individual tax rate in the US, and the highest cost of living. I can not face any further increases - and I don’t even have a subprime mortgage I can get federal assistance with!
I’ll bet somebody had to do some real digging to find that statistic.
“Tax breaks for the rich”. Another way of saying those who pay taxes and earn a living. When the democrats say “rich”, they don’t mean just those with mansions and limos. They are talking about the person who earns more than $40K a year. They want you to believe otherwise. The so-called “rich” are you and me, I’m afraid. I would like another tax break.
Europe is running unemployment rate double that of the USA. Europe’s out of control welfare state is destroying its ability to thrive. Europe’s inability to control immigration is bankrupting many of its nations. Europe is destroying the nuclear family through taxation and the industrial capacity through regulation. Why any American would want to follow such an example of failure is beyond me. Unfortunately, our politicians will use any tactic to obtain and keep office, and the simplest tactic is to rob a successful Peter to pay a failed Paul.
Hmmm. “Alphonse” echoes a common sentiment of the reality-impaired. Short version, Reaganomics worked right up until Bush I’s “no new taxes” tax hike undid it.
It’s simple, kids. You cannot, can not, tax your way to prosperity. Altho it’s counter-intuitive, lower taxes increase revenues by revving up the economy and letting people keep, spend and invest more money. History demonstrates this basic economic principle again and again and again, and yet still the clueless left wants to pile on taxes. The more things change . . . *sigh*
instead we could do what neocons want and spend trillions of dollars overseas while simultaneously cutting taxes, ensuring that we have a bloated deficit.
So, is JFK the only Democrat in the history of our nation to ever take an Economics class? It must be because he is the only Democrat to ever get it. It is a very simple concept: Tax cuts help grow our economy and increase the amount of money taken in by the government. And tax cuts for the rich benefit everyone. I just don’t get why Democrats don’t under stand this. This is Econ 101, people. And its not unproven theory.
Now I know that Democrats are smart people, (however misguided they may be) and the Democrats in Washington have all received high caliber educations from prestigious Ivy League schools……. so what is the problem? Do they not get it, or do they not want to get it?
Raising the tax burden on the rich does nothing to help level the playing field. When rich people are taxed heavily they hide their money so that it can’t be taken away from them. Conversely, if you lessen the tax burden on the rich they take their money out of hiding and start spending. And when rich people spend their money they create jobs and grow our economy. THIS BENEFITS EVERYONE!
Actually the biggest mistake we have ever made as a nation is to reduce taxes on the poor to the point that they get rebates for something they never paid. These people have no idea what taxes are, except that at the beginning of the new year they can apply to get money from my pocket. I think that every single person should shoulder equally with not even one single exemption at all. I think that it should be born on spending, and not on income. Then when politicians start talking increasing taxes, everyone, including the poor losers on welfare will start to think about what it means to them.
When half the polpulation pays somewhere neare 95% of all taxes, that says something about the society.
I would be willing to pay what ever taxes are needed in order to maintain our government, our national level infrastructure, protect our borders, and insure our national interests around the world. I am not willing to pay one single penny though on national welfare, mortgage bailouts, local projects, and any other nanny state B.S. that corruptocrats and rhinos keep trying to push onto us tax payers.
I never thought in my lifetime that this properous and great country would be able to tax itself in to disrepair.
It is so sad to think that our founding fathers fought against imperial rule, just so we could impose imperial rule upon ourselves 232 years later. Any claim that we, the American citizen, are represented by our selected officials is simply untrue.
Congress is exempt from the law. Elections allow illegal voting and ballot stuffing, while denying free speech and due process rights. Our hard-earned dollars are brought back to a country (Washington D.C.) where we have no input on how that money is spent. And when it is spent, it is wasted on inefficent programs designed to hold power and influence in a select few, to the detriment of the many. These lower Lords answer only to the upper Lords of the House and Senate, and only when they are guilty of the crime of protecting the rights of the American citizen.
My friends, America has regressed to colonial times. It won’t be much longer until we are forced to house and feed government entitlees, and pay extreme taxes for our “tea”: gasoline and oil.
Sad days are ahead!
I always was in favor of a flat tax, or national sales tax. It has worked well in the European countries that use it. Unfortunately, with all the lobbyists, it sees little chance.
Regarding CA and our RHINO governator - since he took office our state budget has doubled from $75B to $140B in 5 years! This excludes the untold billions approved for state bonds…
As for the 10% across the board cut - it’ll never happen. The state budget analyst said this morning that cuts should be reviewed program by program and prioritized.
The liberals controlling the city council of my hometown of Irvine, CA just rammed through a new program to duplicate a state health care enrollment program for SCHIP, create “culturally competent healthcare and social services”, and healthcare “scholarships” to pay for childrens healthcare premiums and co-pays for those that can’t afford them for families up to 300% of the poverty level. Their logic? We have a 2007 annual tax surplus…and (repeat after me) it is for the children. Did I mention that this is an election year for local pols, too?
On the social security issue, there are more than two ways….raise the payroll tax and/or cut benefits…..to solve the problem. Bush had it right. Take a portion of workers contributions and put them in a private account to earn a higher rate of return over the long term. This the solution. I wish I had my own and my companies contributions to invest myself.
I could have done much better with only a slightly higher risk.
Reagonomics was not that great. The huge unfunded (not paid for by spending cuts) tax cuts initially were a stimulus, but after a while the surging deficit started dampening growth. This slowdown was reversed only by the Clinton (with help from a Republican congress) budget balancing.
As for Bushonomics, his best year is almost as good as the Clinton average. The median wage (that wage earned by the special person with exactly half making more and half making less) actually declined under Bush, Jr., once you adjust for inflation.
You might think cutting taxes and growing deficits is good in theory, but don’t claim the data support you.
A stronge example of riple effect of liberal-nomics…
http://news.yahoo.com/s/nm/20080115/tc_nm/autoshow_gm_fuel_dc_2
Who will pay the increase???
Stop the insanity and drill now!!!
#34 On January 15th, 2008 at 2:15 pm, astonerii said:
“Actually the biggest mistake we have ever made as a nation is to reduce taxes on the poor to the point that they get rebates for something they never paid. These people have no idea what taxes are, except that at the beginning of the new year they can apply to get money from my pocket. I think that every single person should shoulder equally with not even one single exemption at all. I think that it should be born on spending, and not on income. Then when politicians start talking increasing taxes, everyone, including the poor losers on welfare will start to think about what it means to them.”
Exactly.
As I’ve said before, we seem to be approaching the situation where a majority of voters pay no tax at all.
And, once we’ve reached that tipping point…what reason, what incentive, would the receivers of government money, as opposed to the taxpayers, have to hold taxes down?
In our nation, everybody’s vote counts as much as everybody else’s. That is both our country’s greatest strength; and, as it looks, it might soon also be its greatest weakness.
Anyone else besides me come to this unfortunate, uncomfortable realization?
Again, think about it: if a MAJORITY OF VOTERS have NO TAX OBLIGATION, what’s to stop them from raising taxes again, and again, and again, and again, …?
We were at or near recession until the democrats took over congress.
I meant:
We were NOT at or near recession until the democrats took over congress. Coincidence? I think not.
I have a question….
What is the point to having unions in govenment jobs?
We have what used to be part time and volunteer jobs now getting six figures with early retirement and bennies until death….all paid for with monies stolen from those with a fraction of the income and benefits. And if they want more they strike. WTF? I wish our governments (local, state and fed) were required to run like a business and have to show a profit.
Thats right… our nation was founded over a revolt based upon taxation without representation. Well, as I see it, representation without taxation is just as bad. If you are on welfare, then you shouldn’t have the right to vote!
From Drudge:
I can’t think of a better prescription to destroy the United States than this. Tax our primary energy supply and deny access to our reserves? Check. Jimmy Carter-style stagflation? Check. Indebted to the muslim ummah? Check. Subsidize 40MM illegals? Check. Abort future generations? Check. Is America mortally wounded yet? This is the perfect way to have a dead civilization. The left must be so happy. Now they can go look for their Mao and their Fidel.
It seems that in every state that has a democratic majority in their legislature is on the verge of massive increases in spending. Here in Colorado we continually hear about how state taxes need to be raised in order to pay for new (not needed) welfare hand outs. Along with increases in public school spending. Something that never seems to reach the classroom but rather ends up in the teacher union coffers.
When will Democrats and Liberals take economics 101. That less is more. Wal-Mart is a priome exampleof this. Instead of looking at the short term quick gain, look at the long term large gain.
Our economy has not been the same since WWII. It was after this we went into this massive short term quick gain crap. Japan on the other hand learned from us that long term, reinvestment, and lower governemnt spending creates large surpluses of tax revenue.
If we happen to get one of these tax and spend liberals in the White House we definately are looking at a full blown economy that will tank.
We all know from personal experiance that when taxes go up the first thing we do is cut back on personal spending. This means the service industries will be hit first. Once this happens we will see a trickle effect. As service workers loose jobs more and more unemployement is seen. This leads to an unstable economic senerio.
While every one is focused on the Presidential election, lets not forget the local ones. Congress and the Senate. We have to elect fiscal conservatives to advoid a catastrophe.
A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves money from the public treasure. From that moment on the majority always votes for the candidates promising the most money from the public treasury, with the result that a democracy always collapses over loose fiscal policy followed by a dictatorship.
The average age of the world’s great civilizations has been two hundred years. These nations have progressed through the following sequence: from bondage to spiritual faith, from spiritual faith to great courage, from courage to liberty, from liberty to abundance, from abundance to selfishness, from selfishness to complacency from complacency to apathy, from apathy to dependency, from dependency back to bondage.
-Professor Alexander Tyle (circa 2,200 years ago)
One of these things is not like the others.
Go Fred!
I agree with astonerii (#34) and granite (#41). It is unfortunate that so many pay no income tax at all, as it replaces the idea of my money being used for government programs to other people’s or free money to be paid for things. Down to maybe the poverty line, every earner ought to pay at least a token amount of money in taxes to retain that link.
If taxes keep going up, we’ll all be down to the poverty line…which is exactly what the government wants.
Michelle, I feel your pain - at least here on the Eastern Shore I can buy my big-ticket items in tax-free Delaware without burning half a tank of gas to get across the Bay Bridge.
Since you speak of my fellow Red Maryland contributor Brian Griffiths, it’s worth noting that he took up a challenge recently from our state’s loony left bloggers at Free State Politics and suggested budget cuts for the state.
Now for the rest of you, I’d like to bring up another point. We on the right constantly talk about cutting taxes and the budget (particularly on the federal level) and are savaged by the MSM and left-wingers for doing so. I’d like to start questioning their premise (cloaked in “bipartisanship”) that budget cuts are bad by asking them to justify what they spend:
Is the program helping those it originally targeted?
Are the program’s services duplicated someplace else?
Most importantly, prove that it can’t be done more efficiently somewhere in the private sector.
We cannot make any headway when we’re always on the defensive. While Brian did a good job making his imaginary cuts, the better response would have been to ask the FSP folks and their fellow travelers to justify what they want to do using (as a start) the three things I note above.
Michael Swartz
http://www.monoblogue.us