I mentioned earlier this year that my home states' governor Mark Sanford was proposed as a possible Veep pick for John McCain. Now The Economist has Sanford on their short list of suggestions for top dog in 2012. This especially excites me when he writes things like this:
Several questions led me to oppose bailing out the states. They are worth asking, even if you supported bailing out Wall Street.
Who bails out the "bail-outor"?
Washington is short on cash these days and will borrow every dime of the $150 billion to $300 billion for the "stimulus" bill now being worked on. Federal appetites may know no bounds. But the federal government's ability to borrow is not limitless. Already, our nation's unfunded liabilities total $52 trillion -- about $450,000 per household. There's something very strange about issuing debt to solve a problem caused by too much debt.
Do you now have to be a financial "bad boy" to win?
Community bankers tell me that they are now at a competitive disadvantage for being careful about who to lend to, because others that were less disciplined will get a federal bailout. This is also true for states. Those that have been fiscally responsible will pay for or lose out to the big spenders. California increased spending 95% over the past 10 years (federal spending went up 71% over the same period). To bail out California now seems unfair to fiscally prudent states.
Great, then he can bankrupt the nation just like our state!
ReplyDeleteHow can the Economist endorse Obama and then turn around and support Mark Sanford? Seriously.
I wasn't aware that he was bankrupting the state.
ReplyDeleteIf I remember correctly after the primaries The Economist really liked McCain. I think they just recognize that Obama can be very good for America.