When talking politics or economics, it's usually a powerful rhetorical tactic to compare our own Colorado to California - especially these days. In that light, here's a fitting and timely reminder from state senator Ted Harvey:The lesson Colorado’s legislators must learn from this recession is clear: fiscal responsibility works. Even though the legislature collectively fell short of creating a rainy day fund, TABOR and the Arveschoug-Bird 6% spending cap forced Colorado legislators to keep spending low. Had the government enjoyed free rein in ramping up spending – which is a great temptation to many lawmakers tasked with spending other people’s money – Colorado’s budget crisis would be as serious as California’s. [emphasis … [Read more...]
Will Democrats Try to Stiff Us with Another Arbitrary, Pointless Tax Hike?
Four years ago, a narrow majority of Coloradans bought the slick advertising of the Referendum C tax hike. Today, statehouse Democrats seem to have forgotten all their grandiose promises. (Or were they not telling us the truth in the first place?) A great catch by Face The State (go and listen to the brief audio clip for yourself):So we were shocked to hear JBC vice-chairman Rep. Jack Pommer, D-Boulder, assert during last week's discussion that “Ref C wasn’t designed to fix anything," and that "Ref C was an arbitrary amount of money.†… [Read more...]
Putting Today’s Economy in Perspective
It's national election season, which means perspective on the economy is badly needed. Thanks to Rossputin for highlighting this article from economists Brian Wesbury and Robert Stein. Read the whole thing for yourself, but interesting tidbits are that family income last year hit its first all-time high in 7 years, income inequality declined faster than at any point in the previous 45 years, and the poverty rate stayed below its pre-1999 norms. Yes, economic growth has lagged, causing the country to flirt with recession. But according to Wesbury and Stein, "these figures bolster the case that the underlying fundamentals of the US economy were sound in 2007, before the Federal Reserve decided to try to inflate our way out of financial … [Read more...]