PA budget

[SamIam]

Times are tough all over. Colorado has around 8.8% unemployment and the state legislature has been slashing programs left and right (no pun intended). It's a vicious cycle. The economic downturn means that there is less funding for things like food stamps and medical assistance for low income families, etc., etc. This, at the same time that the rise in unemployment has created a greater demand for these services.

Colorado State University has created an eye-opening program called the "Back Seat Budgeter." You can can click on this site and play around raising or lowering different taxes, eliminating programs or restoring their funding, etc. http://www.backseatbudgeter.com/Budg...ult.aspx?tid=1

It's kind of a cool way to mess around with the over all well being of the state. I started out by punching in the numbers for what I consider to be a mildly liberal agenda - restoring heath care funding to previous levels, no cuts to education, etc. I tried paying for this spending by raising taxes by about 2%, hoping my hypothetical Colorado tax payers wouldn't revolt and try to impeach me or something. I ended up $20 mill in the red.

So then I tried getting mean about it. I just kept all education, health care, etc at their 2010 funding - no cuts, no increases. And, ignoring Merc's and UG's screams of "Communist!," I raised Colorado income taxes by 5%, increased taxes on liquor and tobacco by a $1.00/bottle and .50/pack respectively. I increased the state sales tax by 5% and clobbered corporations with a 10% tax increase.

Even after all that, I was still $7 mill in the red and had thrown away the Colorado State constitution.

In the current economic climate there seem to be few viable options for liberals or conservatives.

[tw]

Originally Posted by SamIam

In the current economic climate there seem to be few viable options for liberals or conservatives.

Numerous reporters, including Joe Klein of Time Magazine, note the curious. With Democrats and Republicans, workers and management, taxpayers and government, moderates and extremists, etc all in confrontation. How curious. Even the millionaire may be on strike against the billionaires. People who created this mess - ie Wall Street, financial organizations, financial instrument creators, corporate spin doctors and their finance departments, etc - are running scot free, unchallenged, and with record incomes. The number of people actually prosecuted is almost zero (even Enron executives almost went free).

I have said this often when we were creating these economic problems back in early 2000s. Money games mean economics takes revenge many years later. I believe I may have put dates to it such as 2010 and 2012.

Welcome to what happens when we let the richest and least productive segments of society create economic miracles using (Kennedy) tax cuts, putting social security into stock markets, liberate financial markets, subvert all regulation (especially the SEC), permit secret contracts rather than trade them on public markets, use war to make a stronger economy, welfare to this nations most unproductive industries (ie $25billion annually to ethanol), obstruct Basel xx, shorting pension funds while blaming the unions, solve problems by creating jobs with finance spin games, and claim US financial markets were smarter than the rest of the world.

Welcome to how almost everyone pays when we ignore what was obvious ten years ago. And notice how the few people most responsible for this mess are only spectators. Have seen their incomes increase easily 100% when the average American income dropped 2%. So who is, for example, government going after? Only the richests are not even seeing their tax rates go back to normal. People most responsible for this mess are the least under stress.

When it comes to economics, there is no justice. Economics takes revenge if a nation does not heavily regulate finance people. And hold their feet to the fire when spread sheets four plus years later report what they really did. Instead, the people must punished are common people who let the finance industry ply them with lies. Ie balloon mortgages. Ie borrowing money to buy a car. Ie credit cards with an outstanding balance. Ie tax cuts to the rich that create no jobs.

Or maybe there is justice? The people most harmed by this recession are the ones who all but wanted it by remaining silent. For example, knowing Saddam had WMDs, corporate welfare to drug companies to keep drug prices 40% higher. K Street where almost nobody got prosecuted. By not demanding heads in the White House and Congress. In fact many now hurt foolishly praised the people who were most harmed them. An overwhelming reaction I saw in the Cellar approved of what now we must pay for. Welcome to how economics takes revenge. And maybe the real criminals - the common man who voted for these people - is being properly punished.