After the Presidential election I was talking with fellow legislators about the defeat of the snack tax at the polls. One of them asked how we conservative Republicans lose when 63 percent of the voters are with us on the lower taxes. I pointed out that the same voters who rejected the snack tax passed every bond issue on the ballot. Their message seemed very clear: “We want all these things, we just do not want to pay for them.”
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Following World War II, the United States found itself in a position that no nation in the history of the world has ever known. Somewhere between one half and two-thirds of the world’s GDP (Gross Domestic Product) rested in one nation, the United States. Much of Europe and Asia had suffered enormous destruction while our infrastructure remained virtually untouched. The Depression was over and the government was awash in social security tax revenues. This created a politician’s dream. They were now able to give the population something for ‘nothing.’ The debt we incurred was merely kicked down the road in this dream world.
Now the end of the road is upon us yet the dream world still lingers.
According to a recent poll, only 35 percent of the population understands that the majority of the debt in the country is made up of entitlement spending, i.e. Social Security and Medicare/Medicaid, military benefits and pensions. Because such a small portion of the population understands the true situation, it allows people running for office to continue to make claims about the marvelous benefits they plan to pile on the voters along with absurd plans for how these are to paid for.
John Edwards in his recent campaign for president, promised to give primary education to all the children of the world, and end both American and European dependence of foreign oil. He claimed that Uncle Santa Claus would pay for this and many other good things by ending Bush’s “tax cuts for the rich.”
Looking at the list he made, it would not take one long to conclude that not only is there not enough money through ending the Bush tax cuts to pay for these things, but there is not enough money in circulation to do so. Such is the nature of the campaign game that when told this, the listening crowd cheered and believed. In essence he told them that we could have the European welfare state, and then some, on the U.S. tax dollar while keeping our tax rates below European levels.
A couple weeks ago I heard another candidate make an often-heard absurd claim of his own. He was going to balance the federal budget by getting rid of fraud, waste, abuse, and earmarks. While these are all desirable goals, the nature of our situation will require much more. Nearly all economists tell us that economic growth rates can’t possibly rise fast enough to fund our deficits. Our politicians have made many, many more promises than they know how to keep.
We lowered retirement ages while our population aged. We used Social Security money to quadruple welfare and fight two wars and expand benefits to those who never paid in a single dime. This delusion seemed to reach its most absurd point when President Bush informed the nation that we could fight two wars and cut taxes. No nation in history has ever tried that before. Regardless of one’s position on the war, all should know that war is expensive. We told ourselves it would be over soon and we would bring the troops home. What made us believe that, while we still have troops in Germany and Japan 65 years after we won those conflicts, is beyond me. Europe and Japan have long had the means to pay for their own defense.
How will this affect us at the state level? Maine currently receives $1.69 from the federal government for every $1 it pays in. When the interest on the debt and entitlement spending begin to overwhelm us, Maine will not escape the ripple effect. Having manipulated state spending to maximize federal matching funds for many years, the effect will prove damaging. As Herb Stein, Nixon’s chief economic advisor (whose advice was routinely disregarded) once said: “Something that can’t go on, won’t.”
This unsustainable spending will find its logical end in declining state budgets and far deeper cuts than we can imagine.
So when this campaign season comes around and candidates make promises, look into what they say. Remember what your grandmother told you, if it sounds too good to be true, it probably is.
The interesting thing is that most conservatives, when asked if they’d like to return to the Eisenhower years, smile nostalgically at the good times. The US was indeed #1 in most ways – even access to health care.
What these conservatives don’t remember is the highest tax rate was confiscatory back in Ike’s time. The wealthy had to pay their fair share. Trickle down was just a feeling that little kids had when they didn’t make the bathroom on time. There was true parity among the social classes because all had served – the draft spared none and hiding in the ANG to claim service at an Air Base O Club wasn’t the province of the rich. Witness Jack Kennedy in a combat zone. Veterans were given a leg up with the GI Bill through which education and housing were available.
Not everything was good – I can recall water fountains in Virginia with the signs Colored over one and White over another. I was passing through Richmond on my way to begin my service to the country in the Coast Guard. We’d passed through an era not unlike the one we’re in now when dissent was seen as unpatriotic.
So, my conservative friends, let’s go back to the fiscal policies of 1956 and keep the social policies of 2010. We could afford the latter, because the wealthy helped to shoulder the burden of shared responsibility.
You say you don’t like that idea, Charlie?
I thought not.
There are people in our society who we have to support finacially on moral grounds who can not contrbite themselves monetarily to society.
Lance, you yourself admittedly got involved with a totally stupid bill prohibiting wine tasting. It goes to show how easy it is to judge as an arm chair quarterback.
Ross Perot did a great job in explaining to America the fiscal perils we faced and for the next 8 years we did better then we had in decades to lower the debt. Unfortunately, all that got lost while we became obbsessed with oral sex in the oval office.
And then on killing people who had a different religion than our founding fathers
Shame on us all.
Tony
if person ‘A’ (a poor person) is entitled to health care, and person ‘B’ (a taxpayer) is responsible to person ‘A’ to provide that entitlement, then what did person ‘B’ do to fall into the debt of person ‘A’? what is person ‘A’s responsibility, having received the entitlement without contributing to the system for it, to person ‘B’ having been forced by the federal government to provide that entitlement. Does person ‘A’ owe it to person ‘B’ to live a healthy lifestyle, that is to refrain from excessive drinking, smoking, sexual promiscuity which can lead to sexually transmitted diseases, obesity or any other lifestyle choices that a person can make that contribute to their health and welfare? Will the government force people to modify their behaviors? With this demonstration, it can be concluded with little effort that person ‘A’ and person ‘B’s liberty is not looked at equally by the federal government, that is to say that person ‘B’ cannot refuse his or her obligation impelled by the government and refuse to pay the taxes that will be levied against them for this new entitlement through threat of incarceration and penalty.
Micheal please explain your comment about killing people who had a different religion than our founders?
“the end of the road is upon us” ???
Lance,
I’m still searching your diatribe for the “legislative update.” You sound anti-Bush, anti-Social Security, anti-Medicare/Medicaid, anti-military benefits and anti-pensions. Is there anything you don’t say “NO” to? Honestly, what are you smoking?
Please get a grip.
–Dennis
“There are people in our society who we have to support finacially on moral grounds who can not contrbite themselves monetarily to society.”
Unfortunately, we take care of far too many more deadbeats and frauds. Welfare is the biggest financial drain on this state and nation. But to say that 50, 60 or even 80% of those on it are fully capable to fend for themselves is like being a racist. In my line of work I see this every day. We pay their rent. They buy an XBox. We pay their heat. They buy another fifth of Allens. We pay for their food. They buy more cigarettes. We pay their healthcare. They have more children. When does it stop?
There are people who have sufffered strokes, been in accidents, born with birth defects been attacked in random acts of violence that they in no way brought upon themselves. Babies become orphans. people become elderly and through no fault of their own don’t have the means to support themselves.
Just as our justice system and most religions porport that it better to let a guilty man go free rather than prosecute the innocent, so too is it probably always going to be true that some people take advantage of societies charity.
If we truly wish to rid ourselves of the parasites of society, we must first improve our education system, make it affordable and create jobs in our country. The biggest drain of all is the military. The first lesson taught in economics is the principle of guns and butter. You can’t finance a futile war, or two and expect to still have the resources to take care of your own country.
We attacked Afganistan to capture or kill Osama Bin Laden. We let him slip away. We attacked a soveriegn nation (Iraq) without cause and without provocation. We demanded they give over WMD. They said they didn’t have any. So we attacked them and have occupied their country for years. Well, they DIDN’T have any WMD!
Far, far more Iraqi’s, Afgans and Muslims have been killed and maimed by the USA then our own casualties.
How would we feel if we were occupied by a foriegn invader? What did the Iraqis do to warrant the destruction we have wrought upon their country?
They had a miserable dictator. So do lots of other countries. He had a vage plan to assasinate or president. So did Fidel Castro, plus he even thought he could Nuke us. He is going to die in his sleep from old age.
Even beyond that we have so destaibilzed the region as to make it unsafe for decades to come.
What we need, Lance, are politicians who can think ahead, and get things done. You blew my vote when you got duped by the wine tasting bill.
How selfish soever man may be supposed, there are evidently some principles in his nature, which interest him in the fortune of others, and render their happiness necessary to him, though he derives nothing from it except the pleasure of seeing it. Of this kind is pity or compassion, the emotion which we feel for the misery of others, when we either see it, or are made to conceive it in a very lively manner. That we often derive sorrow from the sorrow of others, is a matter of fact too obvious to require any instances to prove it; for this sentiment, like all the other original passions of human nature, is by no means confined to the virtuous and humane, though they perhaps may feel it with the most exquisite sensibility. The greatest ruffian, the most hardened violator of the laws of society, is not altogether without it.
Jerry, Let’s call this trickle up economics. Have you considered the other side of your diatribe: Give them billions in bailouts, and they give their own people tens of millions of dollars in bonuses, give them the green light to bomb other countries and they turn trillions into cost-plus contracts for their very close friends… Corruption in dollars or billions of dollars? I think the rich are fleecing the hell out of this population and guys like you want slam the poor for it.
Lance, Only 35% of the American people may understand that much of our budget pays for necessary obligations, education, health-care for the elderly, and military benefits for those who have bravely served our country, yet most Americans understand that we are in trouble. It is impossible to live in a dream world when friends and family are being laid off, and your town’s school budget needs to cut almost 2 million. Short of living in a dream world, we do the next best thing. We vote for representatives to go to Augusta and Washington to do their best to work on the problems. These problems are huge, they are daunting, but we look to you to guide us. What are your thoughts on how to succeed? Do you need our help? Should we raise taxes? You seem to hint at that need, given our current budget, but do you mean it? The election is coming up, we need to know who has a plan to address these issues. I respect your honesty in not wanting to make false promises, but let us know what you would like to do.
“I think the rich are fleecing the hell out of this population and guys like you want slam the poor for it.”
That just proves one of my points: You can’t say anything bad about the welfare recipient without coming off as almost racist. I agree that the rich are fleecing this country but that in no way takes away from the fraud being perpetrated in the welfare system. Sure there are many people getting help from the state that need it. Unfortunately, there are even more that don’t. I’m not just spouting hatred for the poor as I’m not a wealthy person myself. When I was a kid my mother went on AFDC when my parents divorced. She worked hard to get off it and did. You don’t see that as much now. The mentality is “Why work at a job when the state pays more?” I’m there. I see it everyday. Many times when I’ve tried to hire a 20- something to do some work they would ask to be paid under the table so they wouldn’t lose their foodstamps. And then they won’t show up because they were out partying all night. It’s not just me, ask any contractor.
Michael, if the spoils of war had been applied in Iraq we would have financed the war all together, but the critics would have said it was truely a war for oil. When were you last in the Middle East? I don’t remember seeing you in Oman when I was there, maybe we ran into each other in Bahrain, or was it Dubai? I can’t remember. What did Iraq use on the Kurds in the North? I can’t remember. What did the Iraqis use on the Iranians in the 9 year war/ I can’t remember? Once again I can’t remember. Have you ever seen a woman walk ten feet behind her spouse in a long black veil in 100 degree temperatures? Her face not even showing because she cannot look you in the eyes for fear of being punished or killed. Here is a good article http://news.bbc.co.uk/2/hi/middle_east/3154375.stm.
Mr. Haszko, every time you can, you seem to be attacking Lance Harvell. Where is your constructive criticism? Where are your ideas that might be used to help with the short fall that the state is facing, or the problems social agencies are facing? Tell us, if you were elected how would you have fixed this? Instead attacking Lance how about some good ideas that could be usefull to him instead of what sounds like sour grapes.
The thing that no one is going to say and I will, is that taxes will go up. The school is not going to cut 1.9 million dollars that the state has cut. So your town property taxes will go up to make up the difference even though we voters passed a law that the state was to fund 55% of education.
do any of you class warfare supporters truly believe that if you elimimnate all the “haves” that you will eliminate all the “have nots” and in that prosess what do you think is going to become of the “have some want mores” when they relize that there is no reason to become a “have” because they will lose it to the “have nots”
Jerry, I see your point. Really. But I am not ready to cut services for people like your mother (according to the statement you made) who needed a leg up for a spell just to give these 20-yr-olds a kick in the %&+ which they clearly need. There are just too many people especially now that need services from time to time.
Ryan, the Kurds got gassed by Saddam because the US promised to protect them after they helped us in Gulf War I. We didn’t, they got massacred. The reason Islamic fundamentalists are in charge in Iran is because we deposed the leaders that were good for their population — women in Iran once wore miniskirts like their counterparts all over the world. You are missing key points here, I sugget looking beyond military propaganda (mainstream media). Start with All the Shah’s Men by Stephen Kinzer.
Mr. Morgan,
There’s a critical difference between what Lance Harvell and Dennis Haszko have to say; Lance is holding an elected office and Dennis and many others are imploring him to let us in on how he is helping the situation he forecasts with doom and gloom. What we keep getting are rehashed rants and reports. We’ve heard it all many times (many times in this forum in fact.) The voting public wants to have faith in an elected official – meaning he/she has a thoughtful, constructive, rational strategy for problem solving. Dennis is essentially saying ‘where’s the beef?’. It’s Lance Harvell who has to bear the burden of a response.
Mr. Morgan, you yourself seemed to get involved in town politics because you believed you could make a contribution. I believe you can understand the frustration of voters who don’t feel they have someone who is woking to make substantive progress in Augusta. What we have is someone observing and resporting back – with a bit of creative/quesionable embellishment.
Greg
Ryan, you have no idea who I am or where I have been.
I have known middle east women who prefered to be covered up, they didn’t have to worry about what they looked like in public. They are also safe from sexual predators. I have known far too many women in the US and Maine who suffered spousal abuse,were abandoned with their children to support themselves. I know women here who have been attacked and raped by total strangers, by their fathers, brothers, uncles.
Here’s a fact: we are the only nation to attack another country with Nuclear weapons. With two bombs, we caused civilian causalties that eventually (long term radiation illness) killed more people than we lost in both theaters of war! That’s a fact.
We got the kurds to rise up against Sadam, and left them.
We did nothing to prevent the genocide in Rowanda, Darfur, the Balkans.
What spoils of war? Your head is back with Napoleon.
Hutch, Hutch, Hutch, stop being clear headed and rational! You cannot reach these folks, so infected as they are with envy, and so convinced that the government, with its police power to take away the “haves” property, is the answer to all charity problems.
I am happy that Representative Harvel put these ideas together to warn us about the fiscal storm we are going to suffer.
Michael:
I never got involved with a bill to prohibit wine tasting I added beer tasting to a wine tasting law. Which Rep Webster amended to require more restrictions. That has been fixed this last week.
Guys the whole point of the article was to point out that we as a soceity want things but do not want to pay for them and that politicians prey on this by making false promises.
As a state rep I am allowed a so I try to educate as to the true sistuation we face. I am working on some of these problems as I write and I have proposals in the works which I will unveil in the future.
Taking a look at Greece and California and Illinois Nations and States which have spent far beyond their means do not fare well.
I was surprised to see Dennis’ pithy comment was only third on the list. You are slipping, man.
The point of the article was that Maine, as a welfare state that gets big bucks from the Feds, will be very hard hit by the looming financial shortfalls brought about by federal entitlements, and we need to start thinking about this now – duh!
You know, I’ve read the pabulum other state reps put out, and sour grapes artists like Haszko should be thanking their lucky stars for having a state rep who actually KNOWS some things…
But Robert, who is the ghost writer? My instinct is Chandler. Seriously though, I give Lance credit. I think he is doing a great job engaging with the public. I think he has the good of Maine and Mainers at heart. What more can you ask for? But he isn’t taking a stand on what it is that he will support or not support when the time comes for the cuts he says are necessary. I want to know what Lance will cut and what Lance feels we should fund.
Lance presented a simple thesis, that the state and the nation have accumulated debts and entitlement obligations for which they cannot meet. This is an international phenomenon and the European welfare states, with their demographic downward spirals, are the first to come to the edge of the cliff. Greece is the first, Spain, Italy and Portugal are close behind.
Their rates of taxation are already at a level commensurate with the Eisenhower years, but a good deal higher for the middle and working classes. So the Greek idea seems to be to shift the cost to the Germans since Germany is richer than Greece. A German in the private economy retires a 67. Greeks on the government payroll retire at 58 with fourteen month’s pay per calendar year. German public opinion does seem receptive to the solution.
Margaret Thatcher pointed out that “the facts are all conservative.” Reality is made up of facts and the liberals have come to understand that conservatives are not their real enemies. Reality is their enemy. Lance presents them with a dose of reality and they arm themselves for verbal combat.