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No one seems to be writing opinion pieces quite the way I would, so I decided to do it myself. The name? Taverns are places where one goes to discuss the interesting events and things in the world, so this is my tavern. I will offer my views on politics, economics, and whatever else strikes my fancy.
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Friday, August 01, 2003
Republicans Creating the Problems they want to be elected to solve.Paul Krugman again has a very clear statement showing why the Republican irresponsibility is exacerbating the California fiscal crisis.The recall isn't just a case of hardball politics. It's also a grand act of evasion: in the face of a severe fiscal crisis, voters are being invited to focus not on hard choices but on personality. Replacing Gray Davis with someone more likable isn't going to pay the bills. You often hear claims that excessive spending is responsible for California's budget woes. True, budgets grew rapidly after the mid-1990's. But California began the 1990's by slashing outlays in response to a fiscal crisis, and most of the subsequent growth was simply a return to pre-crisis levels. As analysts at the nonpartisan California Budget Project point out, real state spending per capita was only 10 percent higher in 2002-03 than it was in 1989-90  that is, most of the spending growth was simply a matter of keeping up with the population and inflation. The key factor in rising California spending has been the effort to rebuild a crippled education system. Proposition 13, the 1978 cap on property taxes, led to a progressive starvation of California's once-lauded public schools. By 1994, the state had the largest class sizes in the nation; its reading scores were on a par with Mississippi's. Voters wanted this shameful situation remedied. Indeed, much of the recent growth of education spending was mandated by a rather complex measure called Proposition 98. So when conservatives denounce "runaway government spending" in California, what they're really talking about is the effort to hire more teachers and repair decrepit school buildings. Still, now the state faces a huge deficit, and spending must be cut. But shouldn't the state also seek more revenue? During California's last crisis, Governor Wilson increased the sales tax and temporarily raised income taxes on top brackets. This time Governor Davis proposed doing more or less the same thing  but Senate Republicans refused to go along. Their counterproposal relied entirely on spending cuts  but, tellingly, offered no specifics about what, exactly, should be cut. This week the stalemate was finally resolved, sort of. The budget that was passed contains one significant tax increase, a rise in the vehicle licensing fee  for technical reasons, this didn't require a vote. And it uses elaborate fiscal footwork to evade restrictions on state borrowing, passing the problem on until next year. It's better than no budget at all, but it's a monument to political irresponsibility. Do we really want to elect people like this to run our governments? The problem is an economic downturn and Republican demogoguery. Let's hope Gray Davis can get through the recall election October 7th. Then we need to do something about the federal deficit which is caused by exactly the same kind of demogoguery. |
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