Posted on 01/07/2011 7:03:00 AM PST by SeekAndFind
Paul Krugman has noticed the looming budget crisis in the state of Texas, and he's all over it.
Specifically, he is pointing out that the Republican utopia of low regulation, low taxes, pro-business policies, and tough, conservative spending decisions is no panacea--either for the state's financial condition or for the state's citizens.
Despite these policies, Texas is as broke as, well, New York, with a huge structural budget deficit to fill. And it already has very low education spending per pupil and a very high percentage of residents without health insurance.
And now Texas's two-year budget review is coming up, so there will be some more hard decisions to make.
(Excerpt) Read more at businessinsider.com ...
Who is hotness ? Want.
Bureaucracies and government inefficiencies infect each state, especially around larger cities.
Being a nobel prize winning economist he should be able to do the math on that and understand that for workers that's a big plus.
RE: and per the picture posted on this article:
I’d hit it.
Business Insider hs a Jekyl and Hyde personality. The last time they published a hit piece on Texas, they had pictures of FAT COWBOYS with Bulging bellies :)
RE: Living in “the broke state of Texas” you get to keep 15% MORE OF YOUR INCOME than living in “the broke state of New York”.
Texas has a lot more avenues to raise funds such as implementing a short term income tax (Which I don’t think they will).
Would you rather be in a deficit with 0% state income tax or at 14% state income tax? Which state can handle the issue better. I don’t think this is a fight liberals want.
On top of that, Texas doesn’t have the issue of unfunded liabilities associated with pensions, nor does it have the problem of public unions that the other states mentioned have.
ping
Texas has high home ins.
Texas has high utilites
Texas has high property tax
Whut the hell is that thing?
(with apologies to Steve Martin)
Krugman also ignores the fact that unlike failed states like New York and California, Texas continues to add jobs and businesses continue to stream in, that’s not a failed state. As many have already stated, Texas by it’s own constitution must have a balanced budget, this ‘shortfall’ is a PROJECTION, not a reality. It means that based on the current amount of taxes and funding coming in, the state government will not be able to pay for all the things they want. It means they have to go in a trim stuff out.
Nice reply to Krugman’s column by Kevin Williamson at The Corner:
http://www.nationalreview.com/exchequer/256614/no-paul-krugman-texas-not-broke
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