WHY WE NEED TO LET STATES GO BROKE
Published in the New York Post on August 10, 2010
Federal Band-Aids won’t cover the fiscal problems of such states as New York, California, Michigan and Connecticut forever. State bankruptcy and fundamental restructuring of state and local finance — and labor relations — is at hand.
Take Connecticut. In the current fiscal year, $2 billion in federal subsidies have helped tide it over the recession — a hefty share of its $15 billion budget. But these infusions are one-shot grants, renewed only if Congress acts affirmatively to do so. Other states depend on similar manifestations of federal largess.
STRATEGIC MEMO TO REPUBLICANS: DEPERSONALIZE THE ELECTION
The Democratic strategy for the 2010 elections is becoming apparent: Make each Congressional and Senatorial election a contest between two people and avoid a contest over the issues. Knowing that they lose over Obamacare, the economy, the stimulus, the secret ballot in union elections, and cap and trade, the Democrats are determined to convert the legislative contests into person vs. person comparisons of the candidates. Rather than focus on issues, they want to look at their biographies, tax returns, business histories, campaign contributions, and errant misstatements.
Film crews follow Republican candidates to catch them in the odd moment or film their off the record comments. The Democrats are relying on a massive game of “gotcha” to win the elections.
THE COMING CATASTROPHE: STATE GOVERNMENTS
As Congress reconvenes next week to pass a $26 billion bailout of state and local governments entombed in their own deficits, we witness a foretaste of the crisis that will be the central event of the first half of next year: the collapse of state governments.
As long as the Democrats control Congress, they will continue to rubber-stamp Obama’s requests for bailouts of profligate states. But when the Republicans take control, they will be less than forthcoming. Republicans will ask the central question: Why should taxpayers from states that have cut their budgets and observed spending restraint, pay for the extravagances of the other states? Why should forty-seven states have to pay for California, New York, and Michigan?
WIKILEAKS AFGHAN PAPERS KILLING OBAMA
As we suggested in our recent column, the new Gallup/USA Today poll confirms that Obama’s ratings have collapsed as a result of the WikiLeaks release of Afghan War memos. Down from 46% in the most recent poll, Obama’s job approval has plunged to 41% — the lowest it has ever been in any major poll.
Democrats have now joined in the defection from Obama impelled by their increasing anger over his continued involvement in Afghanistan and the emerging double dip in the recession. Support for his war policies there has dropped to 38% from 46% in February while approval of his handling of the economy has plunged to 39%.
