penbeast0 wrote:Hands,
The simplicity v. opportunity for political rent seeking came in response to your comment about a hybrid electoral system. And, while I realize the states balanced budgets often use some form of trickery to get there (just as the federal budget estimates often do to get to their rosy scenarios), the discipline of having to actually try to balance things out keeps the politicians more honest. If politicians at the state level want to try Keynesian public spending stimulus tactics, they have to create a "rainy day" fund when revenues are surging instead of just spending it all. It's the real world which means it's messy, political, and often self-serving or even corrupt but it's still appreciably better than the federal budgeting attitude.
"A billion here, a billion there, and pretty soon you're talking about real money."
I have said, with respect to authorization bills, that I do not want the Congress or the country to commit fiscal suicide on the installment plan.
I am a man of fixed and unbending principles, the first of which is to be flexible at all times.
Senator Everett Dirkson.
So what does that have to do with the hybrid electoral idea where the popular vote gets some number of electoral votes?
As for how state balanced there budgets, I was simply pointing out that they are not all held to the same standard and that states do have the Fed to fall back on so its not like they are as responsible as some people make them out to be. And lastly, you want it that way to a large degree. You don't want states hiring and firing year over year depending on economic conditions one year. Yes, they should have a rainy day fund to help smooth out the economic ups and downs, but that can only get them so far. The Fed should help as a safety net. One of the largest dragging forces on our economic recovery is state and local government layoffs. If they are lay people off at once because of one bad year, it has a snowball effect.
Auto/manufacturing is recovering
Housing is forming a bottom and recovering - that took time since we mostly did a free market approach
But state and local government employment is dragging because they don't have the funds this year or last because of the economic disaster that hit in 2008.
With those other areas recovering, states they will have more money moving forward so things stabilize and rebound so they will look even better next year.
http://www.ncsl.org/issues-research/bud ... ments.aspxThis recovery feels very similar to where Clinton was after his first term only Obama walked into something many times worst then what Clinton did and Clinton walked into a bad situation. If we want to work toward getting thing balance and steadily grow our way back to a stable situation, we need to sit with the Dems and Obama.
A second term will not be easy. Lots of tough issue to tackle. But I trust them to navigate the situations.
Some infrastructure spending.
Some increased taxes
Some spending cuts
Some redirecting of funds from the military industrial complex to real investment in our future.
If adding two wars and the Bush Tax expenditure added 500 billion to the annual deficit then ending them should do the reverse. Much of the annual debt problems will get solved by erasing Bush's policies.
They can get it done is a balance way. Much better approach then to just lower everyone taxes and hope the markets work it out all on its own. That isn't going to work. Successful organization have a plan.
Infrastructure spending will help the public job market as well as the private market. It will increase RealEstate values. They increase property taxes. That help S&L governments. That hires more police, firefighter and teachers.
Trickle Up Economics. The multiplier effect. Build from the middle up. Its a proven winner.