State's Right

by Don Boudreaux on February 22, 2009

in Stimulus

Today I am especially proud to be from Louisiana.

Comments

{ 26 comments }

Russ Nelson February 22, 2009 at 9:08 am: Good on him! Why can't people see that the stimulus is not any kind of correction of the market place, but instead a very large but temporary distortion of the marketplace? And when the distortion stops, the marketplace will be left off balance, and will need Yet Another recession to recover. WHY IS THIS NOT OBVIOUS? Are we the only smart people on the planet?? Scary!
muirgeo February 22, 2009 at 9:54 am: Wow Republican big talkers considering presidential runs. Please, please, please for once stand on your principles. Whatever!
Adam February 22, 2009 at 10:45 am: Well, don't be quite so proud just yet:

"Congressional Democrats, anticipating that some Republican governors might reject the money, wrote a clause into the bill allowing the money to be disbursed over the objection of governors if the state legislatures pass resolutions accepting the money [...] Mr. Nagin said he expects the state to use the legislative work-around provision."

Let's see first how hard Bobby Jindal fights to keep the legislature from going over his head. This could just be a case of having your cake and eating it, too. "Well, I tried, but that darn assembly, it just couldn't say no!"
DAVE February 22, 2009 at 10:52 am: "But besides Mr. Jindal, South Carolina Gov. Mark Sanford and Alaska Gov. Sarah Palin have said federal money may be coming with too many strings attached and may leave the states on the hook to fund the positions and projects when the stimulus money is gone. All three governors are being widely considered as possible 2012 presidential candidates"

what do you know……..
Ramanujan's Notebook February 22, 2009 at 11:13 am: I loved this quote from Obama:

"The American people are watching. They need this plan to work. They expect to see the money they've earned, they've worked so hard to earn, spent in its intended purposes."

Money being spent wisely and not for political gain is the one think that I DO NOT expect from increased government spending.
T L Holaday February 22, 2009 at 11:14 am: Adam, thank you for pointing out Jindal's stagecraft. Everyone loves a puppet show.
The Reticulator February 22, 2009 at 12:49 pm: Good for him. Maybe there will be reason for me to become a Republican again someday. (I gave up on them ten years ago and told me to take them off their mailing lists and phone lists. Quit voting for them, too.)

Normally I'd advise people to take as much of the money as they can get from Obama's Greed Bill and use it to unelect the greedsters who voted for it, but in this case it looks like there are strings attached — requirements to implement a more repressive government.
vidyohs February 22, 2009 at 7:31 pm: "The American people are watching. They need this plan to work. They expect to see the money they've earned, they've worked so hard to earn, spent in its intended purposes."

It's enough to make a man (and a woman) puke.
Jacob Oost February 22, 2009 at 8:31 pm: (with a due sense of exhaustion and dread)

muirgeo, what is your link meant to mean?
brotio February 22, 2009 at 9:24 pm: Jacob,

I'll answer for Mierduck:

"Reebleflark bolednego gflertinblertl schnerledelf."

That makes more sense than anything Mierduck will tell you.
tarran February 22, 2009 at 9:35 pm: I think he is claiming that since Louisiana receives more money in payments from the Federal Government than its residents pay in taxes that they are being hypocritical in refusing the money.

I guess only net taxpaying states are permitted to come to their senses

Joking aside, this is one of the major problems with Madison's vision. The ability of the federal government to levy taxes without any impediment from the states, which was a major goal of the Federalists when they set out to redesign the United States government, has meant that the Feds could levy ruinous taxes, and then make a "plata o plomo" offer to the states; states that toe the line get some of the money back, states that don't don't.

It was kept in check during the first 125 years when Senators were appointed by state legistlatures. Now that they are elected directly by the population, this very important check on federal power is gone.

Incidentally, you will find that if you take the ration between the sum of all payments made to all states by the feds and the sum of all taxes levied, you will come up with a number greater than 1: a significant portion of the payments come from money that was either borrowed or printed and was never taxed.
muirgeo February 22, 2009 at 10:37 pm: (with a due sense of exhaustion and dread)

muirgeo, what is your link meant to mean?

Posted by: Jacob Oost

There are a lot of implications. It's sad that you can't open your mind to them. The date seems far from random,

Most significantly is it not of interest to you that these grand standing Republican governors states all receive a far greater proportion of federal spending even before the stimulus?

And off topic somewhat but also demanding an explanation is the question of how could the liberal states with all their burdensome regulation and high taxes be so prosperous that they have to fund the conservative states?

You really couldn't see these implications without my explaining them to you? I guess I would say maybe you could have Rush, Sean, Michael or Bill'o explain them to you but some how I think they would miss the implications as well. It's a mindset of not wanting to have to mind.
Jon February 22, 2009 at 11:26 pm: unsubscribe.
Russ Nelson February 22, 2009 at 11:31 pm: Obviously, these governors believe that within four years, the shit will hit the fan, the depression will have gotten worse, and they'll plat FDR to Obama's Hoover (and Obama *is* acting more like Hoover than FDR).
Marty S February 23, 2009 at 2:00 am: Muir,

You unconsciounable liar, you talking about principles is like Blagojevich talking about integrity.
Gil February 23, 2009 at 2:15 am: Duh muirgeo! Conservatives are trying to break the system – give Libertals onerous taxes and regulations whilst securing tax revenue will impoverish lefties whilst enriching righties. When it all comes to grief, lefties will have starved to death and righties will set up a new system with minimal taxes and regulations and live happily ever after.
Brian February 23, 2009 at 2:20 am: I wonder if Jindal has heard of sunset provisions. The LA legislature could write the law to expire when the federal government money for increased unemployment benefits expire. I think Jindal is looking for some excuse to reject it, if he had any guts he would say the real reason is philosophical.
geoih February 23, 2009 at 7:37 am: Quote from muirgeo: "And off topic somewhat but also demanding an explanation is the question of how could the liberal states with all their burdensome regulation and high taxes be so prosperous that they have to fund the conservative states?"

You mean like the great state of Michigan, which consistently ranked in the bottom 10 for returns on taxes in your link, and is also at the bottom of the barrel in it's present economy?

I'm not seeing the connection.
Procrustes February 23, 2009 at 11:17 am: If Jindal & Sanford can't stop this freight train, we might as well begin to open the prison camps that Hayek wrote of in 'The Road to Serfdom.'Because it be coming.

Procrustes
Bob February 23, 2009 at 12:01 pm: Like Pigs at the trough Governors, Mayors and Legislators are looking for some mana form their lord and master the federal government in order to keep their bloated self serving budgets alive. It is time for us to get our houses in order and allow government to downsize to more appropriate much lower levels. When are people going to realize what Milton Friedman said is so true, "There is no free lunch".
MnM February 23, 2009 at 12:35 pm: Bob,

While I largely agree with you, I have one question. How do we "allow government to downsize"? I wasn't aware that we were keeping them from it.

They seem to have little interest in downsizing themselves; they don't have any incentive to.
muirgeo February 23, 2009 at 12:57 pm: "..to open the prison camps that Hayek wrote of in 'The Road to Serfdom.'Because it be coming."

Procrustes

Posted by: Procrustes

They want to build roads, schools and wind turbines but really they mean prison camps….OK put down that stupid juice and shut off the right wing nut job radio station and try thinking for yourself. Jesus H….
Marty S February 23, 2009 at 3:34 pm: Muirgeo,

You shameless lying partisan hack. Your brain is so washed that it is has "Das Kapital" tattoed. Your post above brings out some great economic insights. Have you started growing a pair balls?
muirgeo February 23, 2009 at 6:08 pm: Marty,

We should go for a beer sometime. You sound like you'd be lots of fun.
Methinks February 23, 2009 at 6:35 pm: Muirdiot, by the look of your bloated middle, your glazed, empty eyes and the meandering blather you smear all over this blog, I'd say you've bloody well had enough beer.

Brotio has you quoted perfectly above.
Marty S February 23, 2009 at 7:08 pm: Muir,

You dishonest dumbass, i don't hang out with dead rotten meat like you.