Fiscal Responsibility

I usually just assume that liberal Democrats (or is that now redundant?) will tax and spend spend or borrow and spend as their knee jerk reaction to any crisis, large or small.    That prudence was beyond them.    I may have to re-think that.
I saw a bit of Coumo’s coronavirus press conference today.    He was asked whether, to offset the pandemic’s hit to NY State’s revenues, he would consider authorizing a multi-billion dollar borrowing program for the State.   His answer was worthy of the flintiest green-eyeshade accountant.    He spoke about how borrowing should be reserved for capital projects that  would increase the State’s revenue over time … like an investment.    He spoke about the dangers of borrowing to fund day to day operations.    How borrowing for even the best projects must be prudently analyzed against the State’s ability to repay.    “Mortgaging our children’s future is not a game I’m willing to play”.    He sounded like Rand Paul.    I was shocked.    I had always assumed that the logic of fiscal responsibility was lost on Libs.    Apparently not.    He actually seemed like he got it.

But then he switched gears and argued that, because NY had to be fiscally responsibly, it was incumbent upon the Federal government to fund NY state government.    And to undertake massive infrastructure spending as well.   That fact that the Federal government has to borrow those funds to give to NY  seemed to have escaped his notice.   Or perhaps in Cuomo-land, Federal borrowing does not mortgage the nation’s children’s future like NY’s borrowing mortgages the future of NYs children.    Strange.    Somehow, the assumption underlying his position seems to be that  moving up a level of government invalidates or sidesteps all the accounting standards and principles that applied to the lower level.    Has the magical thinking of Modern Monetary Theory gone mainstream Dem?

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12 thoughts on “Fiscal Responsibility”

  1. Ed K:
    Has the magical thinking of Modern Monetary Theory gone mainstream Dem?

    I think it has, and it isn’t just the Democrats.  Just listen to Trump and Powell (the Fed chairman) and there isn’t a whiff of worry about where these trillions are coming from that (in the words of Gerald Celente) “aren’t worth the paper they aren’t printed on”.  It’s all just “stimulus” and “help”, which seemingly comes from the bottomless magic treasure chests in the Fed basement.

    I mean, even before the Year of the Jackpot, who was talking about the consequences of running up a trillion dollars a year in debt?  And now, we’re talking about, what?…four trillion…six trillion?

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  2. Cuomo just admitted his priorities for who should pay New York’s bills:

    1. Other people’s kids
    2. New Yorkers’ kids
    3. Nobody
    4. There is no 4
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  3. John Walker:
    And now, we’re talking about, what?…four trillion…six trillion?

    I’m going to quote Charlie Sheen.
    Back in the Heidi Fleiss Hollywood madam trial, Charlie Sheen was called to testify.   Apparently he was a regular client.    Later, as he was leaving the courthouse he was the center of a maelstrom of reporters.    One guy shouted out His question … “Charlie, Do you realize you spent more than $80,000 on prostitutes ?!?!”

    Sheen had a classic reply.

    “Hey, It adds up.”

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  4. Ed K:
    But then he switched gears and argued that, because NY had to be fiscally responsibly, it was incumbent upon the Federal government to fund NY state government.

    Remember this?

    Ford to City: Drop Dead

    In a speech before the National Press Club on October 29, 1975, President Gerald Ford denies the near-bankrupt New York City a federal bailout, prompting the New York Daily News to run the infamous “Drop Dead” headline the next day.

    This headline is too ironic for words.

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  5. When it is OVER, why does it matter how emphatically it is OVER?  I am an optimist!  The Left contemplates the wealth to be stolen when America is liquidated, and the forever Power to be had thereafter.  What truly obtains is no Terran pawnshop for money plus dissident populations of free men not slaves.  Marx to Saul Alinsky to Nasty Pelosi, America will not be a Castro convertible.

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  6. “Mortgaging our children’s future is not a game I’m willing to play”. Cuomo said

    Uh too late that for that Andy. NY is broke and has been broke for a long, LONG time. NY and other high tax states spent a long time living off of the local and state tax deduction to keep their high earners from taking off and moving out. Well, that is over and high earners are realizing what a bum deal they have and are looking to leave. Bankruptcy is inevitable  and I think, some of these governors see this lockdown as a way for them to blame the virus for financial problems rather than decades of mismanagement. (that is my theory)

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  7. Mate De:
    Well, that is over and high earners are realizing what a bum deal they have and are looking to leave.

    And guess where they’re headed to spread their liberal voting and ruin yet another community?

    Florida. Our senator and former governor Rick Scott who did so much to poach other lib states and bring us 50,000 new jobs barely won his last two elections. The Donald is disliked by all the millionaires in Palm Beach who originally migrated from the Apple and now we’re going to see this on the SW coast as well. Hopefully, the Panhandle will hold firm.

    29 electoral votes, people.

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  8. EThompson:

    Mate De:
    Well, that is over and high earners are realizing what a bum deal they have and are looking to leave.

    And guess where they’re headed to spread their liberal voting and ruin yet another community?

    Florida. Our senator and former governor Rick Scott who did so much to poach other lib states and bring us 50,000 new jobs barely won his last two elections. The Donald is disliked by all the millionaires in Palm Beach who originally migrated from the Apple and now we’re going to see this on the SW coast as well. Hopefully, the Panhandle will hold firm.

    29 electoral votes, people.

    Similar situation in Dallas, TX where Pete Sessions used to be a representative. People migrated in from California and now it is super crowded and reliably Leftist. I will never understand that locust mentality of people who vote for the Left.

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  9. Robert A. McReynolds:

    EThompson:

    Mate De:
    Well, that is over and high earners are realizing what a bum deal they have and are looking to leave.

    And guess where they’re headed to spread their liberal voting and ruin yet another community?

    Florida. Our senator and former governor Rick Scott who did so much to poach other lib states and bring us 50,000 new jobs barely won his last two elections. The Donald is disliked by all the millionaires in Palm Beach who originally migrated from the Apple and now we’re going to see this on the SW coast as well. Hopefully, the Panhandle will hold firm.

    29 electoral votes, people.

    Similar situation in Dallas, TX where Pete Sessions used to be a representative. People migrated in from California and now it is super crowded and reliably Leftist. I will never understand that locust mentality of people who vote for the Left.

    I wish I could respond to the last sentence of your comment but none of my leftist friends are speaking to me!

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