Krugman underlines the outbreak of Hooverism in state budgets. States can’t tax, because corporations and the wealthy can move their point of presence for the cost of a tax break and a post office box. Part of Reagan’s plan was what cartoonist Feiffer presciently called "The New Feudalism." Smaller, weaker, government entities are easier to blackmail, bully, or bribe. One of the most pressing projects of a new progressive America is to Federalize. And the outbreak of Hooverism offers a golden moment.
Libertarian looters are salivating over getting hard assets. Republican governors like Pawlenty are eager to enrich their friends by selling assets at fire sale prices. Strangely this same logic was rejected in the case of private assets, where the government was forced to buy up non-voting junk bonds in drag rather than getting any say in how the companies were actually run. What’s sauce for the government, is gravy for the goperment, I suppose.
What is ironic is that many of these sales require federal approval, for example airports built with federal funds.
With governors like Ted Strickland begging for funds to save their states, after the "tax cuts!" mania left them with broken budgets and empty coffers, it seems straight forward to create the Federal Infrastructure Finance Corporation, where aid to states would be swapped with equity in infrastructure. Either the Federal government could purchase outright, or get bonds in the infrastructure or other state asset backed by revenues. This way assets bought at high prices would not go to private hands in an orgy offloading. We don’t need the nation Norquisted, and this would both prop up states, and allow economies of scale and management to be applied.
It would also protect union jobs, because, of course, the first thing the privatizers would want to do is break the unions and lay people off.
[Hat tip to Calitics for proposing that the Federal Government maintain a rainy day fund for states.]
Related posts:
- Three Republican Senators are Worth More Than 76% of the Country
- Rikyrah: Opt-Out States Are “Where the Majority of the Black Population in This Country Lives”
- Rep. DeLauro Calls for New Development and Infrastructure Bank
- Ross Douthat Wants the Whole Country to Look Like Texas
- Jim Cramer: “There’s Too Much Democracy in This Country”
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We the USA have won…the race for the bottom!
Americans are gettin Hoovered all right.
In other news, Bristol Stomp Palin gives birth to Bouncing Bastard Boy named “Tripp”
Far Fuckin Out!
It’s becoming clear that the Palins represent the new Hippie class in america!
Bristol Stomp and her dealy beloved plan wedded bliss as soon as Tripp is able to serve as a witness.
Paternal Grandmother sends Tripp a supply of Oxy as a birth present.
There’s just SOOOO much wrong with that snark I don’t know where to start.
As a DFH Progressive Liberal myself I resent including cheap white trash amongst our membership! *G*
This is so simple and straightforward. So what do we do? Print out copies and deliver them dor-to-door?
who was it that said the way to get rid of government programs was to bankrupt the government?
his plan is working just fine
excellent idea, but with people like reid ,pelosi and rama-lama-dingdong running the show it’s just not gonna happen, sorry
Grover Norquist, Jack Abramhoff and Karl Rove’s corrupt buddy.
smile when you say that
If you need more reason to be depressed about out country….look for today’s Democracy Now. In honor of Pinter, his speech from 2005 accepting the Noble Prize was on the radio and on the website. Be warned…it will make you proud of him but not proud of the USA.
Good idea to warn people here that they won’t be proud of their country!
Drive-by: IIRC most state constitutions require a balanced budget, Governors and legislatures hands are tied from the start. Like that nag will not race. This is where “prop 13″ will be biting everybody in the ass. It has got to be made preciously dear for any company to abandon their commitments after receiving public assistances (including funds), probably by impounding the companies assets.
Every time a Gooper screams “tax cuts!” remind him that you get what you pay for and ask him how much police and fire protection he wants or whether he would like his roads paved. Modern conservatives are a national hazard.
You are correct about the constitutional restrictions, but these have been made a hundred times worse by the relative success of Republican tax cutting mania, which has dramatically decreased the funds available to work with. California is the poster child for this problem. Without Prop 13, the state would not be in anywhere as bad a problem as they are now.
We got Arnie who we elected cause he promised that he’d fix the budget problem without raising the dreaded car tax that sunk Grey. He didn’t, of course- but it’s been a lot of fun.
I think we should start a new political meme. Paying taxes is the sign of a true patriot and tax evasion is treason.
A personal anecdote: A cousin and her husband are republicans and lawyers too. Neither could understand it when school boards went to the courts to force the state legislature to fund the schools. The courts intervened on behalf of the school boards. These wanted a constitutional prohibition on the courts from such oversight.
Moral of story: Republican Lawyers are:
A failure of a fine education
or
An abuse of a fine education.
away, keep things interesting ;-)
Thanks Stirling.
digg
Is the “dreaded” car tax the same as a registration fee or something different?
Pretty much the same thing- it’s the annual tax you pay at registration time- part of it is called “registration” and the other is called something else. People blew gaskets when Grey proposed raising it in order to avoid having to borrow billions….Arnie went ahead and borrowed the billions- putting the state close to bankruptcy…the crowd ROARED and re-elected him-
All state infrastrucuture projects in California have been halted. The state can’t float bonds. In about a month, California won’t meet payroll, even with the “furloughs” state employees have been asked to take. Whether we make it to Obama Time or not, we’re in deep shit and need help now. Revenues are falling faster than you can count; the rotten Xmas sales mean less sales tax, of course.
It’s a vicious spiral sucking everything down the drain. The Feds have got to help, and right away.
Lawyers go to the university and receive training not an education. Education may or may not occur outside of the program.
497 hrs & 4 min
I vote for all of the above.
I am a believer in the uniformity of human nature- so I suspect that voters everywhere are as stupid as we are- but why does it SEEM that we are the dumbest?
If Arnie goes to the feds for help, the first thing he should hear is “raise the fuckin car tax you dumb fuck!”
The recall was a conspiracy. Cheney’s energy task force caused the brownouts and gouged CA utility customers. Lawsuits pending, Lt. Governor promised to sue.
Republicans had the media to lie for them. Arnie’s election made Cheney’s problem go away. No recourse for ripped-off Cullifornia energy customers.
Arnie sittin there in Sacramento sayin “Ders nuttin a kan doo- our problems are soo beeg?”
Ever think of raisin taxes you Austrian carpetbagger?
In Georgia they call it ad-valorem tax. The local gun store sells everything at cost tomorrow because, as their ad says, they hate paying taxes.
Guess the people in our state like ’star power.’ I’m sick of it and can’t wait for Ahnuld to go away. If it’s Dianne, so be it.
And whose plane did you come in. *g*
You tax girlieman!
496 hrs & 58 min
No.
This has been another edition of ….
Rest assured the voter everywhere are uniform in stupid, it may be that you get there first. ;-)
coachpumpkin is at the doorWell, that about says it. Thanks for very big laugh at this sad mess.
New Jane upstairs
Another huge laugh…Dear God…send it all to Maria in case she needs some retorts….
Ahnold in 2007
http://www.youtube.com/watch?v=SUzUbtIptqQ
496 hrs & 51 min
oops 2004
496 hrs & 50 min
Nice Clock—-do you have party plans?
Should anyone read the Pinter/Democracy Now piece….I think we should have a thread about our thoughts, reactions to seeing our country fall apart/go down the drain/be shamed in the world. Obama may seriously save us in many ways. But we will never live down the damage/idiocy of W let alone the complete criminality of his war, the murderer.
All the losing teams are firing their coaches in the NFL- and replacing them with the ones the OTHER teams just fired–and so it goes.
You can also view the whole speech at the Nobel site.
Thank you, I will. How are the critters?
‘Smaller, weaker, government entities are easier to blackmail, bully, or bribe.’
Emasculation of government is an important by-product of privatization, and why Norquist and friends want government small enough to be ‘drowned in the bathtub’.
Government policy is an essential instrument of democracy, and government needs resources to implement its policies.
Beware of sales but also beware of new “infrastructure leasing agreements” whereby entities agree to take over sewer systems and the like today in exchange for a fee.
These deals have always worked out badly for the users of such systems.
After 25 years with the same vet I get worried when he wants to see what the blood work says. It could be nothing but a temporary condition or something serious. Won’t sleep well tonight.
Dang bro, I know how you feel. I took our knuckle heads in for their “wellness exam” and the next day the vet called with the results. After the cancer battle Raven fought I panic every time I pick up the horn and hear his voice.
Well, I am sorry. I’ll be sending purring sounds your way. My best.
I’ve gotten the same way. Particularly after losing 2 within 6 weeks this summer with absolutely no warning signs.
Grover Norquist’s wet dream would seem to be coming true. These right wingers will never stop until they breath their last. Literally.
Above all else, do not let them privatise your water system They did it here before I got here and it is a disaster.
Best wishes headed your way.
On The Newshour, an on the ground report…with discussion.