As everybody is aware for some time now the US and the World economies are reeling. We are in the midst of the worst economic situation most people in the US have ever experienced (and for me hopefully the worst we will ever see). There are new companies laying off employees what seems like daily….500 here, 3000 there. Our Federal Government’s solution is to turn on the printing presses and churn out more and more money, then give it out in the form of various “stimulus” bills aka new age welfare.
We have already seen them bailout big banks and the auto industry, now the latest group to begin stepping forward are state and local governments. The states you see are also sufferring due to falling property values, a drop in consummer spending, etc.. all resulting in dwindling state revenues which are used to pay for all the great government services that are available to each of us.
Case in point I give you North Carolina. You see North Carolina is likely going to experience a $2 billion deficit. So what’s one to do: If you are Governor Bev Purdue, you take a trip to Washington DC to meet with the legislature and President-Elect Obama’s team. To do what – request North Carolina be earmarked for some of the next round of “stimulus” money. Now here’s the kicker, before leaving to visit Washington DC SHE APPARENTLY SPENT 2 HOURS POURING THROUGH THE BUDGET AND FOUND $1 BILLION IN SAVINGS IN SAID 2 HOURS, BUT APPRENTLY THAT’S ALL SHE CAN FIND.
Huh, what..2 hours? Two hours finds $1 billion, you mean to tell me that you couldn’t possibly spend say a week or maybe a month and find the other $1 billion needed to close the gap. Instead you are calling all bets off after 2 hours, that’s it the timer has gone off I can’t spend another minute on this because I just can’t….then you run with your hand out to Washington stating – I need another billion. I spent 2 hours looking and I can only find half of the $2 billion deficit.
***Quick sidebar – Obama if you happen upon this story, you may want to get Bev Purdue a role in your administration. Imagine what she could do for the Federal Budget in 2 hours. If Jimmy Hoffa’s case is still active Mr. Lawman you might want to consider sending the case files over, Gov. Purdue would solve it in 2 hours. Ok, moving on.
If you found $1 billion that quickly, then my thoughts are: what was so easily spotted that you could quickly determine in 2 hours it can be cut? Gov. Purdue I ask you – what is in that $1 billion and do we really need it back in the budget? What this proves to me is that government budgets whether state or federal, are full of big chunky pieces of pork fat. Don’t get me wrong Gov. Purdue I know you yourself didn’t spend 2 hours alone, I am not that naive. My point is this – if you spent 2 hours and found a billion, imagine what you could do if you got your staff working for days and weeks on this. I would bet you could not only find another billion, I bet you could exceed a billion.
For those who read this, you should pay careful attention to not just your representation in the federal government but those who are responsible for minding the books in your state and local government. Governors and State legislatures are combing through their budgets trying to close growing deficits. You will likely see this in the form of cuts in services (some good, some not so good) and in the form of raised taxes…or the case of Oregon and possibly North Carolina new ways to tax it’s citizens via a mileage tax that you pay based on the number of miles you drive in a year. Some may even approach the federal government for a handout.
Finally, keep this in mind: as the printing presses continue to print money, the value of the money in all our wallets, bank accounts, IRAs, 401Ks or whatever investment vehicle could be worth less (think supply and demand and what happens when a market gets flooded with too much of the same product). If we just give money to the states or even businesses, are we really making them more productive? Or are we really just delaying the inevitable? Should the citizens of Washington State be responsible for bailing out North Carolina? That’s exactly what will happen because the Federal government will need to recoup that money at some point….how…..taxes, at some point China and others will stop being our ATM!