By Krista Kafer
As President-Elect Barack Obama pledges to use taxpayer money to hand out cash and prizes in the name of jump-starting the economy, it's clear Colorado Democrats are taking notes. But perhaps they should start taking a basic college economics course. Their chosen model just won't work.
A quick read through the daily papers and opening day remarks by the state's leading Democrat lawmakers reveal their plans to increase government regulation and taxation, two actions all but guaranteed to worsen the state’s economic prospects.
Here’s just a quick sample of their plans. Democrats want to mandate new business regulations. Rep. Mark Ferrandino, a Denver Democrat, is introducing legislation to force banks to give loan defaulters a “temporary timeout” to renegotiate their loans. Rep. Andy Kerr of Lakewood hopes to force businesses to grant a week of unpaid leave so parents can go to school events.
The trouble with these nice sounding ideas is that they will increase government intrusion into private businesses and increase costs that are in turn be passed on to consumers.
Democrats also want to increase the size of government. Only the state’s projected $604 million budget shortfall restrains their ambitions. According to the Rocky Mountain News, a $13 billion price tag for start-up costs is the only thing stopping some Democrats from moving forward with a socialized medicine scheme.
Even so, Rep. Mary Hodge of Adams County thinks a smaller version is doable. Never mind that government takeover of healthcare is a prescription for long lines, escalating costs, deficit spending, and loss of personal freedom.
To improve education, Rep. Karen Middleton of Aurora suggests that we should increase government bureaucracy by creating an "Office of Dropout Prevention and Student Reengagement." State Rep. Debbie Benefield of Arvada wants the government to guarantee every student has access to a high-quality teacher. I’m guessing parental choice isn’t what she has in mind rather the creation of yet another government teacher training program or teacher salary initiative. On the welfare front, legislation is poised to create an “Economic Opportunity Task Force” (at least it’s not a blue ribbon panel) to develop a “strategic, integrated and comprehensive plan to help lift families out of poverty.” Bear in mind that every dollar spent on state bureaucracy is one not spent by entrepreneurs to create jobs, charitable organizations to provide real help, or individuals to invest in their own future.
Democrats think they can create jobs, stimulate growth, and generate prosperity through the creation of more government programs, hand-outs, and regulations. Unfortunately, they missed the lessons of the 20th Century, subtle as they were, like the Great Depression, 70's stagflation, and the collapse of centrally planned economies. “There are severe limits to the good that the government can do for the economy, but there are almost no limits to the harm it can do,” observed Nobel laureate economist Milton Friedman. The direction sought by the majority party this legislative session points to darker days ahead.
I agree, unfortunately
On January 20th, 2009 blackbag says:
I have to agree with you, Krista. However unfortunate this is, it's fairly true that we have weak leaders in Colorado in my humble, widdle estimation at any rate. What has Ritter done for working-class people since he got in? Hickenlooper slaps his friends on their backs and gives them cushy jobs with raises while he lets our schools go down the toilet, homeless people starve, light rail development come to a stop.
Now, as far as your feelings that Obama shall accomplish naught, essentially, I have to take umbrage with this Limbaughian assuption based on little else but sheer pessimism. I mean, come on, it's fine for you to have an opinion and even funny when you get paid to lay it on people with no substantive data to support it and it doesn't make logical coherent sense, but I don't think anyone doubts that massive public works programs, provided states can stop slobbering at the public trough long enough to organize something to offer the new Prez, will create jobs from the ether. What's the alternative? More "trickle down" or "voodo" Reaganomics that didn't work for Ronnie, didn't work for his stooge Bush the Elder, and certainly didn't work for his hydrocephalic, alcohol-addled, self-loating (and rightfully so) "fortunate" son.
As far as harping away on the whole single payer health care is "socialized health care" bunk and hence communism, puh-lease. Shovel that dross material elsewhere, my dear. Everyone with a functioning cerebellum knows that WE are the only major industrialized nation on the planet that profits off our poor like vampiric leeches. France is not a communist government, nor is Spain, or Canada. In fact, these countries are about as far from commie as one can get. These countries' economies are strong compared to ours because they don't have to invade other countries for oil, they don't have idiots forced on them as rulers, their companies aren't going bankrupt trying to pay God-forsaken health care premiums, and ultimately - you get out what you put into your economy. The American worker knows now that Republicans see them as human flotsam, pieces of expendable garbage to exploit. That's why Obama won by a landslide and has an 83% approval rating while George W.'s was 22% and Cheney's was 13%. Bottom line? Canada, France, Spain, they take care of their own. We could give a damn. And we're going bankrupt because of it.
If you want to shoot down Obama, fine. Give us reasons other than just that you don't think his plans will work and he's a Democrat and you're tickled pink with yourself. Do something no one else has been able to do yet. Prove the plans won't work with actual data and support materials like a journo.
Deregulate that.