No Crisis Left Behind

AP reports that newly installed Gov. Pat Quinn is stoking fears in hopes of hiking taxes:

Gov. Pat Quinn says the state’s massive budget hole could be bigger than $9 billion by next year, creating a crisis unlike Illinois has ever seen.

Quinn, in an impromptu discussion with reporters after a meeting at the Capitol today with Senate Republicans, said the state’s budget picture could get worse as the world’s economy continues to falter. That means very difficult budget decisions facing him and lawmakers, although Quinn wouldn’t commit to pushing tax increases or other revenue solutions.

“It’s no fun to talk about taxes, but we have to have a fair fiscal system that pays its bills,” Quinn said he told Republicans today.”

The problem, of course, is that no one will have the money to pay these higher taxes if things are as bad as Quinn says.  And there is no mention of spending reductions.  

We keep hearing about pain and sacrifice because of this downturn.  The only people intent on not feeling it though, are the one’s in government.

Obama Bingo Card

Americans for Tax Reform has printed bingo cards for tonight’s speech.  

Could make for a fun drinking game, too.

A Modest Proposal to Reform Illinois

From the Wall Street Journal:

“By now it’s clear enough that the problem is less Mr. Burris or Mr. Blagojevich than the entire rotten Illinois political culture. So here’s a modest proposal: Every elected state official should resign at once, giving voters a chance to start over with special elections for everyone. State government couldn’t get any more dysfunctional than it is now, and maybe Diogenes could find an honest man.”

It’s short, so read the whole thing.

Hat tip:  Dan Proft

Understatement of the Year

And it is still only February.

In an interview with WLS-TV in Chicago that aired late Sunday, Guerrero says he took the job in June because he felt Blagojevich was “having an image problem and really needed help.”

An Economic Cold

Rick Santelli’s rant on CNBC late last week is still dominating headlines.  It has made the Obama Administration look reactionary in its all-of-sudden embrace of “halving the deficit” by 2013 and announcing their fiscal summit at the White House this week.  They may have been planning for weeks, however “the rant” has tripped them up.  All of the sudden the Administration, as Mara Liasson framed the issue, is on the wrong side of populism.  

But is it really populism? Or is it that most Americans, while they may or may know the term, know what moral hazard is when they see it?  That’s the idea that bailing out home owners who bought a house they knew they couldn’t afford and bailing out banks who made terrible lending decisions is going to reward more bad decisions.  

Why worry about making the correct decision if someone is willing to pay for your bad one?  And if someone is there to clean up the mess, then why worry about the consequences of any future bad decision?  That’s the situation we are in.  By bailing out mortgages owners, many of whom might be deserving in that they just ran into bad luck (collateral economic damage) not bad decisions, we also reward bad behavior.  Bail outs encourage more bad behavior because they create opportunities for people who are paying their mortgages on time to now stop because they found some sucker to pay.  That sucker, by the way, is you — the taxpayer.  

Of course the pro-bailout crowd is going to ask what are you going to do for these people? Nothing? Nothing is the correct answer but for some, almost cultural, reason we don’t accept nothing as an alternative anymore.  But we have to learn to admit that somethings you just can’t do much to make things better.

This brings me to Santelli’s other point, and that point is that the economy has a cold:

Santelli said the issue, in his view, isn’t political. It’s philosophical. He wasn’t for the first stimulus package under the Bush administration either.

“I’ve been very consistent on this,” he said. “I understand what derivatives and toxic assets are. I was in that business. These things are complicated, and I don’t know that the taxpayers should own them.”

His goal, he said, was to spark a debate. 

“I want the new administration to win this one,” he said. “It’s a question whether spending our children’s money is going to make us win or not, or is it going to take its own time to heal, like a cold going away?”

One can’t cure a cold.  One can treat some of the symptoms, but you aren’t going to cure it.  The only way for those toxic assets to be dealt with is by expelling them from the body.  Government can’t do that.  It can move them around from organ to organ and transfer the pain from one to another, but it can’t expel the assets.  

Just like a cold, you will have it for ten days before you start showing symptoms and during that ten day period, how many times do you hear, “Keep doing that and you are going to catch a cold?”  People warned us about the mortgage bubble when Congress created it.  Once again, Mom was right.  But other than some cold medicine and chicken soup to alleviate the symptoms there is little to be done. 

Let’s face it Colds suck.  You are miserable.  But the only way to get rid of it is to let nature take its course.  It won’t kill you and neither will a recession (I know I’ve been wiped out by two shallow ones and now I’m in for a big one).  We can fool around the edges to ameliorate what we are going through but the only thing that will fix this problem is time. 

This time, the populist has it right.

Outrageous Tax Hikes on Tap for Illinois?

The Rod Blagojevich corruption tax is taking shape. From WTAX Radio:

“Maybe the Illinois House is aiming low, and the Illinois Senate is aiming high. While the House is considering a seven-billion-dollar building and construction plan, Senate Democrats are working on a 25-billion dollar plan.. 

The House proposal would be funded by an eight-cent gas tax hike. The Senate plan may take an up to 23-cent gas tax hike, and income tax hike, and perhaps an increase in the state’s driver’s license and title fees. Democrat 
Senator Martin Sandoval  says he wants the larger, more robust and comprehensive plan because it would fund roads and bridges, plus schools, parks, libraries, police and fire stations, and more. 

Republicans wish they were in on these talks. Senate Republican Leader Christine Rodogno (R-Lemont) says any building and construction plan should be bi-partisan, and thinks these proposals will need Republican votes. ”

Somebody needs to emerge in this state to say, “No!” and say it now!  On top of this there is an $1 per pack cigarette tax increase as well.  Let’s not forget that.

It’s understandable that Sen. Radogno (the Senate Republican Leader) does not want to get too far out in front of her caucus, but come on, the gas tax alone would more than double.  

This is about greed and grabbing whatever you can from the taxpayer.   For six years Democrats have increased spending and used every gimmick in the book to pay for it.  Now, the corruption bill is due and they want to spend more!  

Illinoisans, it’s time to get your pitch forks out.

Quote Truly Captures Illinois

Steve Chapman offers it up:  

“If an Illinois politician moved into a pigsty, the pigs would leave in disgust.”

“Potomac Watch” Frames the Debate

One good thing about being in the political wilderness is that you get the opportunity to take time, debate, retool and determine what kind of movement you want to be.  Kimberly Strassel’s Potomac Watch, today, neatly frames this debate.  Alas, a debate that needs to occur in Illinois but so far hasn’t.

Grim News for Rockford

The Main Street Blog has it.

David Keene on Rejecting Stagflation

David Keene of the ACU writes:

“President Obama’s team is apparently convinced that if we just spend enough money on traditional Democratic pet projects, we can work our way out of our national economic mess — and they seem inordinately focused on getting Republican as well as Democratic fingerprints on their “plan.”

They tell us we are in a “post-partisan,” “trans-partisan” or at least “bipartisan” age in which all good Americans, regardless of party and ideology, act together for the common good. That sounds great, but much of it is hooey.

What they really want is for people who disagree with them to work for and to endorse liberal “solutions” to today’s problems. Senate and House Republicans have witnessed this up close as Obama has “reached out” to them, sat with them, phoned them and sought their “input.” In the end, their ideas have been almost universally rejected out of hand by a smiling president who seems convinced that his approach alone has merit.

“Thus, the president has reminded congressional leaders to remember that he and his ideas prevailed in November. Obama has suggested that to get along, Republicans would do well to tune out critics like Rush Limbaugh and to concentrate on what he needs from them.

What the president actually needs is cover. He had the votes in the House to pass his bloated stimulus bill, but looked for GOP votes so he could claim bipartisan support. When no Republican supported his bill, Obama suggested that Republicans have learned nothing from defeat and remain as obstructionist and partisan as ever.”

Here’s my version:

 

President Obama’s Governor Quinn’s team is apparently convinced that if we just spend enough money on traditional Democratic pet projects, we can work our way out of our national economic mess the state’s financial crisis — and they seem inordinately focused on getting Republican as well as Democratic fingerprints on their “plan.”

They tell us we are in a “post-partisan,” “trans-partisan” or at least “bipartisan” age in which all good Americans Illinoisans, regardless of party and ideology, act together for the common good. That sounds great, but much of it is hooey.

What they really want is for people who disagree with them to work for and to endorse liberal “solutions” to today’s problems. Senate and House Republicans have witnessed this up close as Obama Democrats has have “reached out” to them, sat with them, phoned them and sought their “input.” In the end, their ideas have been almost universally rejected out of hand by a smiling president smiling liberals who seems convinced that his their approach alone has merit clout.

Thus, the president Democrats has have reminded congressionalrepublican leaders to remember that he and his their ideas prevailed in November. Obama has Democrats suggested that to get along, Republicans would do well to tune out critics like Rush Limbaugh and to concentrate on what he needs from them.

What the president Quinn, Madigan and Cullerton actually needs is cover. He had They have the votes in the House to pass his bloated stimulus bill, tax increases and more spending but looked for GOP votes so he could they can claim bipartisan support. When no Republican supported his bill, If Republicans stand tall Obama the Democrats will suggested that Republicans have learned nothing from defeat and remain as obstructionist and partisan as ever. won’t receive their precious road construction spending and other scraps off the table. 

Yes, David has written a very familiar piece to those of us who believe in limited government and low taxation in Illinois.  It’s a strategy that President Obama saw played out over and over again in the Prairie State. So it makes sense why Obama would try it.  Thanks to go along get along Republicans — and it has only taken a few and it only takes a few — working supermajorities in both houses dominate Illinois politics.  And some believing they have to live with the status quo have learned to embrace it.

Both nationally and statewide there is little hope in the near term that a fiscally conservative party can re-gain the upper hand.  However, we’ve seen that conservatives can be an effective minority.  Republicans standing tall in the House of Representatives have motivated Republicans and have made it all the more difficult for the Administration in Washington to impose its will on America on other issues.

In Springfield, Republicans are being cajoled into doing what liberals call the “responsible thing,” to pay for six years of irresponsible misrule. That’s some deal.  Politicians do the damage and then call on taxpayers to be responsible.

 

 

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