Our governor is proposing again to automatically reduce spending every time a state has a deficit and in good times to put money away for a rainy day. This last part reminds me of the strategy of Jerry Brown, who put money away for a rainy day. The Republicans, seeing money piling up in state coffers, argued that the savings was proof that the government to need the money. Voilà, the infamous proposition 13.
As a result of the Brown precedent, I assume that the Schwarzenegger plan will effectively ratchet down government spending. During bad times, you will get spending cuts. During good times, you will get saving and then tax cuts, which will create budget deficits requiring less savings. Grover Norquist would be proud that our governor would have turned to state into a bathtub, into which he could shrink the state.
Here's my problem with my (former) governor (yes, I moved east). He talks smalll government when he wants to avoid tax increases but then he is also an FDR liberal when it comes to spending. ARNOLD is no more of a leader than is George W. Bush. Which is why CAL's fiscal situation has not improved under his "leadership".
ReplyDeleteI thought the current GOP talk is all about If the economy is good, cut taxes. If the economy is bad, cut taxes.
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