A Noble Experiment
Mark Sanford, the governor of South Carolina, is determined to undermine the workings of O-Stimulation in his wretched state. I say wretched because the Palmetto State's unemployment rate of 10.4% is second highest in the nation, higher than neighboring North Carolina (9.7%), Georgia (8.6%), or Tennessee (also 8.6%). The only state in worse shape is miserable Michigan at 11.6%.
The Guv says he doesn't want to "spend money we don't have." Uh, Sir, if the Feds give you money, isn't that MONEY YOU HAVE? Sanford's grasp of finance seems less than vise-like.
Employment data are released on a monthly basis, so we have the grim task or, if you don't live in SC, guilty pleasure of following the state's economic decline, under the intrepid leadership of Mr. Sanford, egged on by the likes of 'Morning Joe' and others of comfortable station, urging the character-building exertion of discipline and sacrifice among their less-fortunate fellows.
Helpful suggestion: change state motto from "While I breathe, I hope" to "Will chop wood for food."
March 12, 2009 10:38 AM | Reply | Permalink
Shooter asks: "OTOH how smart is it to use a one time payment to start ongoing programs?"
Not smart. However, you could use it to support existing programs that would not be sustainable for as long as the recession pushes down your own-source revenue. Then when revenues recover you can switch back your revenue for the temporary stimulus. Secondly, you could use it for one-shot capital purchases that reduce other costs down the road. Or you could speed up deferred maintenance of capital facilities for the same purpose.
For the same reason you would not start a new program with temporary money, you cannot fix a structural deficit in the pension system with a one-shot infusion of cash, unless the cash is large relative to the deficit.
Meanwhile, such a repair of the pension system deprives the state's citizens of the gov purchases that would prop up the economy.
As for the blue state b.s., the pattern is clearly regional, not red-blue. Red(ish) states in the SE and Midwest (Indiana, Missouri) are also in relatively deep doo-doo.
Of course, if most states are defined as blue, and the whole country's in the soup, then states that are blue will be too.
March 12, 2009 11:35 AM | Reply | Permalink
March 12, 2009 5:29 PM | Reply | Permalink
Sophist.
March 12, 2009 6:25 PM | Reply | Permalink
"Sorry, but in my opinion the odds of revenues increasing enough cover future obligations is prohibitive."
That's what the Republicans said back in the thirties. In fact, when they aren't driving deficits up for no reason at all as during the Reagan years, the Bush #1 years and the Dumbya years that's what they always say! But when they are in power they point out that the deficits don't mean anything really, they're just numbers. Bah!
March 12, 2009 10:01 PM | Reply | Permalink
Double Bah!
March 12, 2009 10:09 PM | Reply | Permalink
shooter,
http://www.walletpop.com/mortgages/worst-performing-public-schools
The vast majority of these schools are in South Carolina. Maybe Sanford could use a few bucks to ameliorate this.
http://www.bls.gov/news.release/laus.nr0.htm
You're pointing to states that have less unemployment than your model, South Carolina. Maybe if South Carolina wasn't 'shy about taking other people's money' their unemployment rate would be lower. heh heh heh.
March 12, 2009 4:23 PM | Reply | Permalink
March 12, 2009 5:43 PM | Reply | Permalink
shooter says:
Your model Red State South Carolina has a 10.4% unemployment rate
Blue State TAXACHUSETTS has a 7.4 rate.
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State Income tax; South Carolina 0 to 7% (6 brackets)
TAXachusettes 5.3% ( 1 Bracket)
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State Sales Tax South Carolina 6%
TAXachusetts 5%
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Seems like Sanford and the gang in South Carolina don't mind taking other people's money.
heh heh heh
March 12, 2009 6:37 PM | Reply | Permalink
On behalf of the people of the great state of California, send us the money. If Sanford thinks he's winning friends and support for himself and Republicans he's dumber then I think. Here's hoping the White House makes an example of Governor Palmetto.
March 12, 2009 11:01 AM | Reply | Permalink
Let's have a East/West Germany-circa-Berlin-airlift-style contest between the systems. South Carolina and all the other states headed by GOP Governors who reject stimulus cash on one side, and all the states who take their share + on the other. Reganomics vs. Obamanomics: Battle Royale.
March 12, 2009 4:57 PM | Reply | Permalink
I say if you don't want any part of the stimulus you don't get any. Let's see how the state's citizens react to that...
ps Perry in Texas is talking the same BS.
March 12, 2009 8:56 PM | Reply | Permalink
"Chump don' wan' no help, chump don' get no help!"
-- Barbara Billinsley in Airplane
March 13, 2009 3:53 PM | Reply | Permalink
If Governor Sanford is looking for a place to invest unexpected stimulus money, he could start by renovating, or razing and rebuilding most of the SC public schools. Other than a few showcase magnet schools, the health and safety conditions are shocking (not a hyperbolic description, but an accurate one.)
Why is that? The ugly truth is that the majority of children who attend public schools in South Carolina are African American children; white children -- in increasing rather than decreasing numbers -- go to private or fundamentalist Christian schools. Maybe the recession will be good for something; maybe it will fix that thinly-disguised segregation.
March 12, 2009 3:02 PM | Reply | Permalink
That's a good point about blue states. For instance, South Carolinians might be dumb, but they aren't that dumb. Expect it to become a blue state in the next election - which would make it a high unemployment + blue state!
The Dem national committee should follow Dean's rule and plaster the state with ads. Having a retarded governor, who appeals mainly to dittoheads, the GOP is surely heading for the trashheap there.
As in Georgia, and Alabama. The white population has been moved by racism and prosperity to hook their wagon to the GOP, which exploded their prosperity. Where else in the country was there such a magic belief in the "ownership" society?
Channel anger, direct at the dittoGOP, watch meltdown. Repeat.
March 12, 2009 3:14 PM | Reply | Permalink
When you reply to Shooter242 as if he is actually permeable to facts, well, maybe you should check if you're over-stimulated.
For further fun, you can check and see how much of a difference actual facts make to him. He's agin 'em, just like sin.
March 12, 2009 4:16 PM | Reply | Permalink
It's the audacity of hope.
March 12, 2009 4:49 PM | Reply | Permalink
OK, that was funny.
March 12, 2009 5:46 PM | Reply | Permalink