Here in Maryland, Democrat governor Martin O’Malley is on the loose and taxpayers are fearing for their wallets. Brian Griffiths at Red Maryland has the lowdown on the latest tax-and-spend O’Malleynomics plan–“spending lots of money to save less money” under the guise of energy reform:
O’Malley’s energy plan is just another block in the giant game of Jenga known as O’Malleynomics. Using government in whatever means necessary in order to raise taxes, raise fees, and grow the size of government at the expense of Maryland’s working and middle class families. while attempting to further control their behavior. If O’Malley was truly serious about reducing power consumption and improving the environment, there are alternative methods that produce greater long-term stability than carbon trading and by artificially inflating the price of power. And yes, that does mean unclogging the pipeline to allow for the construction of wind farms in Western Maryland, and the consideration of the construction of new nuclear power facilities.
Once again, O’Malley is putting politics ahead of people, and THAT friends may be the true keystone of O’Malleynomics.
In New York, unreality-based Spitzer-nomics is at work. George Marlin at the NYPost reports:
Instead of announcing “the days of wine and roses” are over; instead of declaring a fiscal state of emergency and calling for across-the-board spending cuts and a hiring freeze, Spitzer proposed increases in state spending.
The governor’s speech, which reads like a dry brief composed by a committee of pedantic lawyers, is devoid of reality…
… * Spitzer wants to spend $1 billion to revitalize upstate New York, claiming increased government spending “for investing in business, in infrastructure needed to create shovel-ready sites and in agribusiness” will turn the tide in the economically depressed region.
Spitzer huge infusions of state dollars will have little impact unless and until upstate’s inequitable property-tax levies are reduced. And those are driven by local spending that Albany mandates but doesn’t fund – programs that consume up to 80 percent of property-tax revenues in many Upstate counties.
Unfunded mandates must be eliminated if the region is to be economically viable.
* Spitzer also wants to spend more on education, health care for children, housing and infrastructure -all of which he believes can be funded without raising taxes.
The United States is in a recession. It’s likely that New York will be hit harder and take longer to recover from the economic downturn than the rest of the nation. Spitzer must adjust his budget to cope with this reality.
If he doesn’t, his only alternative will be to raise taxes to finance his spending schemes. If that happens, expect even greater job losses, and thus declines in population and in tax revenues.
It’s no wonder that the top political worry of financial advisers is a Democrat in the White House:
Nothing worries financial advisers more than the prospect of a Democrat’s being elected president in November, according to a quarterly poll by Brinker Capital Inc.
The fourth-quarter edition of the Brinker Barometer, which polled 236 advisers in December, found that 22% indicated that a “Democrat in the White House” worried them more than all other economic or geopolitical concerns.
Rounding out the list of concerns was “global unrest” (15%), “U.S. economic growth” (15%), “a terrorist attack” (13%) and “a recession” (13%).
When asked what their greatest tax concern would be under a Democratic administration, 81% of advisers cited a potential increase in the capital gains tax, an income tax increase and heavier taxes on dividends.
On the other side of the aisle, alas, James Pethokoukis warns about the death of Reaganomics:
Mitt Romney wants government to spend more money on basic scientific research. Mike Huckabee wants to create a prevention-based healthcare system. John McCain advocates a “wage insurance” program for workers. Fred Thompson wants to slash projected increases in Social Security payments.
Pethokoukis zeroes in on McCain, concluding that “If John McCain wins tonight’s presidential primary in Michigan—he’s currently neck and neck with Romney—the victory could well propel him to the GOP nomination and put a new brand of economic policy on the Republican agenda.”
And “new” does not equal better.