Four republican governors, three of whom are running for president in 2016, have shown a model for governance. The substance and style of their state leadership possibly could be adopted nationwide. By looking at the numbers, one can determine whether that would be a good thing or a bad thing -- ultimately, the voter will have to decide for himself or herself.
Wisconsin has an all-star governor, at least right now in the conservative polls. Governor Scott Walker has survived a recall election, won campaign after campaign, and stood foot to foot with aggressive labor unions. He is agnostic on the faith and patriotism of the president. Mr. Walker, on a recent trip abroad, "punted" on a question related to evolution.
On economic issues, he has some problems. Wisconsin went from a $517 million surplus in June of 2014 to a projected $2.2 billion deficit. Like you will see throughout this post, Mr. Walker implemented supply-side (a.k.a. "trickle down") tax cuts. Considered orthodoxy in conservative politics, it is believed that tax cuts can result in higher revenues because of increased economic activity. Right-leaning economists have debunked this crank theory.
In conjunction with less revenues, Wisconsin has not expanded Medicaid via ObamaCare. The costs for Medicaid are squeezing the state budget, yet Mr. Walker remains obstinate on his position. It is estimated that if Medicaid were expanded, the state could save $200 million a year. With choices having to be made, Mr. Walker has decided to cut education. The university system in Wisconsin will have to deal with a 13% cut to its operations. Naturally, students and teachers are not happy.
Hundreds of miles east, Governor Chris Christie -- known for his pugnacity and straight talk, and bridge politics-- manages the state of New Jersey. Mr. Christie faces problems of his own. Recently the New Jersey Supreme Court ruled that his unilateral cuts to the state pension fund were unconstitutional. Like Mr. Walker, Mr. Christie has to answer for a structural deficit of $7.3 billion. Since Mr. Christie refuses to raise taxes, he has proposed withholding property tax rebates, and refusing to fund state pensions. Toxicity surrounds Mr. Christie so now wealthy Republican donors are backing Jeb Bush rather than the New Jersey everyman.
Louisiana's governor is not quiet about his conservative credentials. Even after no-go Muslim zones were mocked and fact-checked, Governor Bobby Jindal stuck with it. Mr. Jindal embraces creationism, mocks climate change scientists, and courts birther voters. He isn't shy when explaining why the state's coffers are so depleted. It is all planned -- he wants to reduce the size of government.
Next year, Louisiana anticipates a $1.6 billion shortfall. Mr. Jindal has already spent money allocated for senior citizens, infrastructure, and reserve saving. His frantic strategies to pay for his own tax cuts have resulted in buildings sold and tax amnesties declared. Over $1 billion was added up from "gimmicks, games, and accounting tricks." Next year, Mr. Jindal may not be so fortunate -- the one-time sources may be dried up.
Like Messrs. Walker, Christie, and Jindal, Kansas Governor Sam Brownback ran passionately on his promise to cut taxes. He stated proudly that his conservative model would be a model eventually replicated across the country. Unfortunately for him, and for Kansas residents, the state is in trouble. Mr. Brownback has to find a way to fill a $280 million shortfall.
Similar to Mr. Christie, the Kansas Supreme Court declared Mr. Brownback's education cuts illegal. The schools are underfunded and the governor has to address it appropriately. One of the biggest tax cuts in history has led to fiscal ruin for the Midwest state.
One can see how a Republican would govern the nation. On the campaign trail, promises would be made about tax cuts, increased economic opportunity, and fiscal responsibility. When eventually it came to governance, however, reality would kick in. A president cannot fudge the numbers; they would have to find a way to pay for their proposed tax cuts.
The data is out there. We all know the Republican model for governance. Let's hope that it is not adopted at the federal level. It's not as pretty as promised.
Showing posts with label Trickle Down Economics. Show all posts
Showing posts with label Trickle Down Economics. Show all posts
Saturday, February 28, 2015
Saturday, November 30, 2013
The Pope Ain't Down with "Trickle-Down"
"What
good will it be for someone to gain the whole world, yet forfeit their
soul? Or what can anyone give in exchange for their soul?" - Matthew 16:26
Francis of Assisi was listening to a sermon in the year 1209 when his life changed forever. The preacher had been discussing the verse Matthew 10:9. In that passage, Jesus instructs his followers to go out into the world and proclaim that the Kingdom of Heaven was upon them. But Jesus also told his followers to not take any money, shoes, or even a walking stick while they spread the Gospel. Shortly thereafter, Francis started the Franciscan Order, a group of "lesser brothers," who lived by a simple creed: follow the teachings of Christ and walk in his footsteps.
It was said that Pope Innocent III had his initial doubts about an endorsement for the Order. The doubts were put to rest when during a dream Pope Innocent III had seen Francis holding up the Basilica of St. John Lateran, the cathedral of Rome.
Over 800 years later, Cardinal Jorge Mario Bergoglio was elected Pope and took the name Francis. A sense of renewal, awakening, and hope has followed the white smoke that emanated from the Sistine Chapel. For over a billion Catholics, Pope Francis has rejuvenated the church. His embrace of the disfigured man showed compassion; and his humility was on display when he washed the feet of prison detainees.
Personally, it could not be more exciting to see Pope Francis living out the name he has chosen. He has called for Catholics to serve and help the poor. And his actions show a desire to ensure that the call is met. Pope Francis also connects with me on a deeper level because he will be the Pope during my confirmation in the spring. Almost two years of confirmation classes will culminate in me choosing a new name as well.
Pope Francis was also in the headlines recently because he attacked "trickle-down" economics -- the economic policies made famous by President Reagan and a number of "fiscal conservatives." In his statement, he condemned the policy by saying, "[trickle-down economics] has never been confirmed by the facts, expresses a crude and naive trust in the goodness of those wielding economic power and in the sacralized workings of the prevailing economic system." He went on to decry the "idolatry of money" and encouraged implementation of economic policies that can actually help the less fortunate.
The remarks possibly gained more attention than it would have otherwise had it not been for Sarah Palin, the 2008 GOP Vice-Presidential candidate. During a CNN interview, Palin said that the Pope's statements of late "sound kind of liberal." There was a social media backlash and Palin eventually issued an apology on her Facebook page.
The Pope is not the only person challenging the belief that low taxes on the rich will spur economic opportunity for all. Economists have been championing ideas that will curb the growth of severe income inequality. Furthermore, some journalists have made the issue of low wages a major topic of public discourse. Both McDonald's and Wal-Mart have had to face heat for being "welfare queens." The two companies have a host of employees who receive government assistance because the large companies do not pay them enough. McDonalds' McResource line, which helps employees sign up for welfare and food stamps, was rightly mocked and ridiculed.
There is no doubt that the public mood has changed on economic fairness because of individuals who have advocated for reform. In the year 2012, over half of the country made less than $30,000 a year. Over the past two decades, the top 1% of incomes have received over 2/3 of the overall economic growth in the country. The inequality is not just unfair, it is morally wrong. That is why Pope Francis has made it a central issue in his push to re-shape the Catholic Church.
There is another Pope who reminds me of the importance of good economic policy. The biggest statue in the world of Pope John Paul II is in the former soviet state of Poland -- the country where Pope John Paul II was born. Poland's economy has become the most dynamic in Europe. During years of economic decline all over Europe, Poland has stood out for its consistent growth and success. One of the main reasons for its success: Poland's refusal to accept austerity and its commitment to invest and spend on infrastructure. Over $137 billion was spent by Poland while other European countries were cutting back.
The point is that our Government can do more to change the current imbalance. Right now, the economy does not work for everybody -- it only works for a few. I sincerely believe that we have a moral responsibility to support ideas that will enable people to earn enough for their families without having to ask for a handout. If we can strengthen someone's ability to earn, we can also strengthen the moral foundation of our country. Pope Francis is right: money must serve, not rule. Let's just make sure that our elected officials hear the good news.
Francis of Assisi was listening to a sermon in the year 1209 when his life changed forever. The preacher had been discussing the verse Matthew 10:9. In that passage, Jesus instructs his followers to go out into the world and proclaim that the Kingdom of Heaven was upon them. But Jesus also told his followers to not take any money, shoes, or even a walking stick while they spread the Gospel. Shortly thereafter, Francis started the Franciscan Order, a group of "lesser brothers," who lived by a simple creed: follow the teachings of Christ and walk in his footsteps.
It was said that Pope Innocent III had his initial doubts about an endorsement for the Order. The doubts were put to rest when during a dream Pope Innocent III had seen Francis holding up the Basilica of St. John Lateran, the cathedral of Rome.
Over 800 years later, Cardinal Jorge Mario Bergoglio was elected Pope and took the name Francis. A sense of renewal, awakening, and hope has followed the white smoke that emanated from the Sistine Chapel. For over a billion Catholics, Pope Francis has rejuvenated the church. His embrace of the disfigured man showed compassion; and his humility was on display when he washed the feet of prison detainees.
Personally, it could not be more exciting to see Pope Francis living out the name he has chosen. He has called for Catholics to serve and help the poor. And his actions show a desire to ensure that the call is met. Pope Francis also connects with me on a deeper level because he will be the Pope during my confirmation in the spring. Almost two years of confirmation classes will culminate in me choosing a new name as well.
Pope Francis was also in the headlines recently because he attacked "trickle-down" economics -- the economic policies made famous by President Reagan and a number of "fiscal conservatives." In his statement, he condemned the policy by saying, "[trickle-down economics] has never been confirmed by the facts, expresses a crude and naive trust in the goodness of those wielding economic power and in the sacralized workings of the prevailing economic system." He went on to decry the "idolatry of money" and encouraged implementation of economic policies that can actually help the less fortunate.
The remarks possibly gained more attention than it would have otherwise had it not been for Sarah Palin, the 2008 GOP Vice-Presidential candidate. During a CNN interview, Palin said that the Pope's statements of late "sound kind of liberal." There was a social media backlash and Palin eventually issued an apology on her Facebook page.
The Pope is not the only person challenging the belief that low taxes on the rich will spur economic opportunity for all. Economists have been championing ideas that will curb the growth of severe income inequality. Furthermore, some journalists have made the issue of low wages a major topic of public discourse. Both McDonald's and Wal-Mart have had to face heat for being "welfare queens." The two companies have a host of employees who receive government assistance because the large companies do not pay them enough. McDonalds' McResource line, which helps employees sign up for welfare and food stamps, was rightly mocked and ridiculed.
There is no doubt that the public mood has changed on economic fairness because of individuals who have advocated for reform. In the year 2012, over half of the country made less than $30,000 a year. Over the past two decades, the top 1% of incomes have received over 2/3 of the overall economic growth in the country. The inequality is not just unfair, it is morally wrong. That is why Pope Francis has made it a central issue in his push to re-shape the Catholic Church.
There is another Pope who reminds me of the importance of good economic policy. The biggest statue in the world of Pope John Paul II is in the former soviet state of Poland -- the country where Pope John Paul II was born. Poland's economy has become the most dynamic in Europe. During years of economic decline all over Europe, Poland has stood out for its consistent growth and success. One of the main reasons for its success: Poland's refusal to accept austerity and its commitment to invest and spend on infrastructure. Over $137 billion was spent by Poland while other European countries were cutting back.
The point is that our Government can do more to change the current imbalance. Right now, the economy does not work for everybody -- it only works for a few. I sincerely believe that we have a moral responsibility to support ideas that will enable people to earn enough for their families without having to ask for a handout. If we can strengthen someone's ability to earn, we can also strengthen the moral foundation of our country. Pope Francis is right: money must serve, not rule. Let's just make sure that our elected officials hear the good news.
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