At least when Dr. Obama is trying to cure the economy. Steve Chapman over at reason.com writes in his post today:
Students of the Obama economic policy will also note a curious consistency in its approach to economic issues. Some problems, like the near-collapse of General Motors and Chrysler, came about because competition worked very well at serving consumers and punishing poorly run companies. Some problems, such as high health insurance premiums, came about because competition allegedly didn't work so well. In both cases, the administration proposes the same solution: more federal spending and a bigger federal role.And there are other examples of this "solution" as well. Executives in the financial industry making too much money? That's easy, we'll create a government entity to control their pay. Banks buying loans without knowing the risk of default? People mortgaging homes without being able to make the payments? No sweat, how many billions do you need?
Too be fair, government expansion is not a new phenomena. But the scale of this expansion is unprecedented. And insidious. I was listening to Gov. Haley Barbour of Mississippi this morning on NPR. He said that the federal stimulus money that his state received was laden with "strings."
For example, in this economy, with tax revenue falling, because Mississippi got stimulus money specifically for education, the education budget is 7.2% higher than its ever been while the public safety budgets are taking a 6% cut. Sounds OK, right? I mean do you really need that many State Troopers on the highway? But beyond the disparity between priorities, what happens when tax revenues stop their slide and level off. No need for new stimulus, but now the bar has been set for the education budget in Mississippi by the Feds. Imagine the political fight that is going to ensue once that funding has to be reduced or more likely replaced by higher taxes? Obama doesn't have to deal with the consequences of funding his national priorities year after year, he only has to do it once. From that point forward, if a state government wants or needs to return to a budget that can be paid for without federal largess, special interests can easily cry foul and accuse responsible public official of "cutting" spending and "hurting the children." If I were a conspiracy nut I might think that was a plan to get Democrats elected all along.
And that is what is so dangerous about government expansion. Once a dollar has been spent or an agency created, it is nearly impossible to remove it from future budgets. We need to be aware and concerned about these "emergency" actions Congress and the Obama administration are taking. We may never be able to undo them.
-Jay
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