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THE CONSERVATIVE REVIEW - June 18, 2010
Bailing Out Politicians Now?
by Pat Buchanan
Even lifelong Democratic pol Steny Hoyer, majority leader
of the U.S. House, is balking at Barack Obama's latest
bailout proposal.
"I think there is spending fatigue," said Steny. "It's
tough in both houses to get votes."
Hoyer was referring to Obama's weekend letter to Capitol
Hill calling for a $50 billion bailout of state and city
governments, to spare our elected politicians the pain
of balancing their budgets with their own tax revenues.
Obama calls it an "emergency" measure to prevent "massive
layoffs of teachers, police and firefighters." Yet, none
of the 20 million state, county or municipal workers can
lose their job unless an elected legislature and a chief
executive agree that they should go.
Obama is calling for a taxpayer rescue of the political
class to which he belongs, to spare it the painful duty
tens of thousands of business executives have had to
perform. Private employees -- 25 million of whom are out
of work, underemployed or have given up looking for jobs
-- may be expendable, but government workers are not.
As America is running a second consecutive deficit of
$1.4 trillion, however, the U.S. government has no tax
revenue to send to the cities and states. We would have
to borrow the $50 billion from China, Japan and the
Persian Gulf nations.
Obama is thus asking Congress to deepen America's fiscal
crisis and put the next generation on the hook for another
$50 billion so today's mayors and governors can get an
exemption from their political duty.
Where is the justice here?
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Government workers enjoy far greater job security than
private-sector workers. At the state and local level,
their average pay and benefits, about $40 an hour, far
exceed the $27 per hour in the private sector. The federal
worker has it even better, receiving $30,000 a year more
in pay and benefits than the average worker in the private
sector.
Obama's proposal is thus about taking care of his own and
the Democratic Party's political base.
Consider. The American Federation of State, County and
Municipal Employees, the American Federation of Teachers,
the Transport Workers Union of America and other government
unions in the AFL-CIO are all powerhouses of the Democratic
Party.
Obama is proposing a $50 billion payoff for his own voters.
Democrats are the Party of Government. The more government
programs and agencies there are, the more government
bureaucrats and beneficiaries there are. As government
grows -- it now consumes close to 40 percent of the entire
economy -- the larger and more solid the base of the party
becomes.
In Washington, D.C., the largest employers, far and away,
are the U.S. and D.C. governments. They dominate the city,
which is why city elections are so one-sided. The district
has the only three electoral votes never to have gone for
a GOP presidential nominee.
Richard Nixon in 1972 and Ronald Reagan in 1984, in their
49-state landslides, did not carry 20 percent of the
district's popular vote. John McCain got 6.5 percent.
As Democrats are the party of government, Washington, D.C.,
is the capital of the Democratic Party as well as the
nation. When the rest of America suffers a depression and
recession, Washington knows prosperity. An economic crisis
for the country means job opportunities here.
But there is a more critical reason Congress should reject
Obama's "Save-Government-First!" policy.
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The fiscal crises gripping Europe and America, which could
portend a crisis of Western democracy, was caused by the
unbridled growth of government. And it cannot be cured
without a rollback of government programs and a downsizing
of government workforces on both sides of the Atlantic.
As Greece is staring at unpayable debt because of govern-
ment's conferring of jobs, benefits, salaries, pensions
and health care the tax base could not sustain, California
and New York are in the same boat and headed for the same
reef.
Once the richest and most populous of states, both now
face a steady exodus of business and taxpayers. But, of
the people coming in to enjoy the cornucopia of benefits
these states provide, many lack the skills, education or
earning power of those departing.
And why should states like Virginia, that said no to many
benefits, have to bail out the spenders in Sacramento and
Albany who could not say no?
For the U.S. government to bail these states out again, as
Obama did with his $800 billion stimulus, would only be to
postpone the inevitable day of reckoning, to deepen the
federal fiscal crisis and to raise the odds further that
America herself will one day have to default.
In the recession of 1981, Ronald Reagan, with his across-
the board tax cuts of 25 percent, bet the ranch on the
private sector -- and won his gamble.
Obama, with his $800 billion stimulus, bet it all on the
public sector. It appears not to have worked. Now Obama
wants to double-down.
Congress should give him no more chips.
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