August 10, 2010
Yet Another “Stimulus”?!
Under Polis, the spending orgy continues, and states will go further into debt with the blessing of the federal government – and at the expense of the US taxpayer!
Yes, the incumbent is back in Washington this week voting for yet another stimulus package. This time, the federal government is doling out $26.1 billion to state education and Medicaid programs, largely to help bail out state government employees and teachers unions in return for political favors.
The states, unlike the federal government, cannot just print money in the face of a budget crisis. By making these handouts available, the federal government is acting like a bad parent, corrupting the states by allowing them to avoid the tough decisions required to live within their means.
The consequence of this legislation is that states will have more incentive to spend more tax payer’s money, rather than tighten their buckles. It requires states to match the funds that the Treasury is borrowing and make a 2 year commitment to the increased funding. In other words, Washington is incentivizing the states to join DC in this irresponsible deficit spending binge and to lock in that binge through 2011-2012. This feeding frenzy will prove indigestible, and further undermine our national solvency.
For more details on this abominable piece of legislation, please see “Spending Pushers”, in the Wall Street Journal.