-
Adieu, Adieu, Remember Me
March 25, 2011 | 38 comments
-
DeMint’s Defense of RomneyCare is Ignorant…And Dangerous
March 17, 2011 | 85 comments
-
McConnell Pushing Vote to Block the EPA from Regulating Carbon Emissions
March 17, 2011 | 9 comments
-
More Barbour on Afghanistan
March 16, 2011 | 8 comments
-
House Passes Three Week Spending Bill
March 15, 2011 | 8 comments
The Spectacle Blog
The NY Times has a front page story on how state budgets are being crushed under the weight of a tremendous debt load that threatens to turn them into Greece, with accounting gimmicks understating the true cost of their fiscal situation, and a looming credit crunch as bond markets become more skittish about lending them money.
There are a lot of important issues here, not the least of which is the fact that it’s only a harbinger of things to come for the federal government as we enter the entitlement crisis.
But there’s another consequence of the state budget woes that is worth drawing attention to, from the article:
The states can also take refuge in America’s federalist system. Thus, if California were to get into hot water, it could seek assistance in Washington, and probably come away with some funds. Already, the federal government is spending hundreds of millions helping the states issue their bonds.
There’s no doubt in my mind that if states were literally ready to collapse, the federal government would step in and orchestrate some kind of bailout. But any massive bailout would inevitably come with strings attached and translate into a further erosion of state sovereignty. The bigger the crisis and the more states that are involved, the more significant that erosion may be — potentially erasing whatever remaining distinctions there are between state and federal government.
View all comments (15) | Leave a comment
More Blog Posts by Philip Klein
http://spectator.org/blog/2010/03/30/state-debt-and-federalism
Follow us:
ADVERTISEMENT
SPONSORED LINKS
FLASHBACK TO: 1995
-
Pope Culture
A man of faith in a godless age is hitting Americans where it hurts.
-
Why the GOP Does Not, Like, Totally Suck
Mr. and Mrs. American Spectator Reader, let P.J. O’Rourke talk sense to your kids.
-
Dames at Sea
-
In the Absence of Guns
In Britain, defending your property can get you life.
-
The Metaphysical Martini
-
Counting the Costs of Clintonism
The debacle of this president’s administration is both a cause and a symptom of the decline of American values. Unless Congress impeaches him, that decline will go on unchecked. An eminent jurist surveys the damage and assesses the chances for the recovery of our culture.
-
Chuck McHagel
It won’t take long for conservatives to scratch this presidential wannabe off their 2008 scorecard.
-
The Legacy of Old John and Mother Fresh-Roasted
-
It’s the Best Time of the Year
The American Christmas, like the songs that celebrate it, makes room for everybody under the rainbow. Is that why so many people seem to be hostile to it?
-
The Bush Crack-Up
Was the President done in by the economy, or by the politics of the economy?
Clip of the Day
ADVERTISEMENT
Martin Owens| 3.30.10 @ 12:42PM
The markets are getting skittish about Uncle Sam, never mind the states.
Chuck| 3.30.10 @ 12:50PM
The citizens of Massachusetts thank former Governor Romney and his health care plan dubbed Romneycare and all the extra debt it has created. The state needs an additional $500 million from the federal government to pay its Romneycare bills adding more to the national debt.
toad| 3.30.10 @ 12:58PM
Blue states go into the hole, get bail outs from the Feds. Feds attempt to tax red states that are not in the hole to pay for bail outs. Red states organize to resist. Pass state laws and file in courts. Fed's attempt to use force.
Ken (Old Texican)| 3.30.10 @ 1:08PM
Fantasy of mine:
Here in Texas, Governor Perry just says "NO! WE WILL NOT COMPLY WITH THEFT WITH THE STOLEN MONEY GOING TO STUPIDS."
.....heh...and he is re-elected as governor overwhelmingly in November...
Nahh, never happen, but cool to contemplate.
Bob the Engineer| 3.30.10 @ 1:53PM
Things are only get worse for the states when the unfunded mandate for expanded Medicaid coverage hits. When ObumbleCare forces medical device manufacturers to lay off workers, the states will have less tax revenue to pay for unemployment benefits. There are probably dozens of ways that ObumbleCare will bankrupt the states. Won't it be fun to find out about them together.
Ken| 3.30.10 @ 9:34PM
Our online shop sales GHD range of GHD Hair Straighteners products. If you are buying GHD Straighteners and Ghd flat iron online through the internet, then we will give you more discounts.In addition, free postage.
Raoul Ortega| 3.30.10 @ 10:02PM
States that go to Washington-on-the-Potomac for a bailout should have to give up the representation in Congress and revert back to being a territory. While territories, the Congress can then carve up the bigger ones. (I'm lookin' at you, California) Those new territories can become states again when they demonstrate an ability to govern themselves. (I expect for some areas, that's be sometime in the 22nd Century.)
Salem Lawyer | 3.31.10 @ 6:02AM
Undoubtedly there would be strings attached with a massive bailout and this will threaten state sovereignty. If this happens I think some of our great forefathers like Thomas Jefferson will be rolling in their graves.