Government Spending

No government has ever spent its way to prosperity. Our proposals help governments be fiscally responsible so citizens can be prosperous.

<p>No government has ever spent its way to prosperity. Our proposals help governments be fiscally responsible so citizens can be prosperous.</p>

"In the long run, we are all dead," John Maynard Keynes once quipped. An influential British economist, Keynes used the line to dodge the problematic long-term implications of his policy proposals. His analysis of the Great Depression redefined economics in the 1930s and asserted that increased government spending during a downturn could revive the economy.

President Barack Obama and congressional Democrats have dug up the dead economist's convenient justification for deficit spending in defense of their bloated stimulus legislation.

Massages for state employees, tai chi classes, and comic books are just three items state government spends your paycheck on. Not all government spending wastes money so visibly, but there is credence to the saying that for every rat you see, there are 50 more you don't.

The Arizona budget clearly needs a good scrubbing, but how much of the deficit really rests in lawmakers' hands? Revenues have plunged nationwide. Maybe our deficit is a casualty of the recession. As Tina Turner might say, "What's spending got to do with it?"

Sunday's Arizona Republic had a cover story on Phoenix-area traffic congestion that reaffirmed my belief that were stuck in traffic because were stuck in some very limiting ways of thinking.

The article described four major traffic bottlenecks and the improvements that are planned to alleviate them. Funding for each project, or lack thereof, was shown. The article was so depressing that desperate readers (and commuters) could easily reach the wrong conclusion that a tax increase to fund transportation improvements is a good idea.

I recently received a flyer in the mail asking for input on proposals to widen I-10 from Loop 101 to I-17. I find the solicitation of public input at this time odd since the road-building plan arises from Maricopa County's half-cent sales tax for roads that has been in place for decades.

In the race to get credit for averting the recession, last month President Bush announced his economic stimulus plan to give $100 billion in cash rebates to individuals, plus a temporary cut for business investment taxes.

The rebates aren't really rebates, since many taxpayers aren't getting one while non-taxpayers are. And economists broadly agree that the stimulus plan isnt going to be much of a stimulus.

If you're one of the thousands of Valley residents stuck in gridlock on a regular basis, theres some bad news. Were in a transportation funding crisis.

The Transportation & Infrastructure Moving AZ's Economy (TIME) Coalition has proposed raising $42 billion in sales taxes to fund transportation projects through 2030. Only $24.7 billion goes to freeways and highways, while $7.7 billion is slated for trains, and another $10.2 billion goes to local projects and enhancements such as walking and biking paths.

In 1970 when an oxygen tank on Apollo 13 exploded, the choice was not whether to land on the moon. The choice was between not landing on the moon and certain death of all on board. Likewise for the passengers of the Titanic; the choice was to find a lifeboat, or die. Ignoring a disaster in hopes that it will go away usually makes the disaster worse.

Since 2001, the number of employees in government regulatory agencies has grown from 172,002 to 244,000. Their funding has increased 44 percent, inflation-adjusted.

As a result, Americans face $30 billion more annually in regulatory costs than they did seven years ago. All told, we pay about $1.1 trillion for regulation and compliance costs, about the same as we pay in federal income taxes.

Governor Janet Napolitano recently vetoed bills to freeze state hiring and spending, in spite of a state budget deficit of more than $1 billion.

It has been clear since last July that the revenues for fiscal year 2008, which ends June 30, would not be nearly sufficient to support the gigantic spending increases in the last four state budgets. During the Governors first term, real general fund expenditures increased 54 percent, 29 percentage points more than population and inflation, combined.