Optics – Better No Budget than a Bad Budget
Rumors abound that the Big Five have agreed in concept to a budget solution. As the details of the plan are presented to the legislators who will have to vote on it, taxpayers hope that those who call themselves fiscal conservatives remember a few basic principles.
First, it is far better to have no budget solution at all than to acquiesce to a bad budget solution; i.e., one that adds to California’s already crushing tax burden. This is not to advocate for continued gridlock. This is to advocate for the economic survival of the state.
We are cognizant of the substantial political pressure from many corners to get a deal – any deal – no matter what the merits. And the fear has been expressed that the failure to address quickly the severe cash flow problem will hurt Republicans because they are more likely to be portrayed by the MSM as the obstructionists. In short, the “optics” of some tragedy – for example, the death of a recipient of in-home health services – is more likely to hurt those who hold the line on taxes.
Sacramento’s Bucket List
There are a lot of reasons why we as voters and taxpayers are subjected to the annual state budget stalemate. Like the sequels to the 1984 hit movie “Police Academy”, they are getting harder and harder to sit through.
Surely, term limits is a big part of the problem, and we have heard almost every argument in support of either extending term limits or eliminating them altogether. But there is a fresher argument against term limits that helps to reinforce the lack of accountability in the state legislature.
Let’s call it the “Bucket List” theory. Remember that Rob Reiner flick a couple years ago about two terminally ill men who escape from a cancer ward intent on living life to the fullest before they die? I never saw it, but I heard it was good from someone I don’t remember. Regardless, the analogy works in Sacramento, too.
But, Will It Work?
So now we have another $827 Billion, or so, in new BailOut funds (which they don’t call “BailOut” anymore – that is so, so 2008) spread out among tax cuts, “shovel ready” infrastructure projects, a little pork here and there, and a bunch of other life preservers and economic emergency plans to get America back to work. But, will it work?
President Obama told us we are averting a “national catastrophe,” some economists tell us that we are still underestimating how bad this situation really is, and the job loss numbers now put us at 7.6% unemployment nationally, with no figures for those who have fallen off the far end of the statistical train, or are underemployed, or who had to go back to work because they lost all their retirement money. If we are sliding into the next great Depression and real, live Deflation is happening all around us (50/75% off sales abound), are we now officially living in our own Lost Decade, like Japan was in the 90’s?