Many observers and commentators of the current economic recession say “unemployment may be high now, but its nothing compared to the Great Depression.” But is that really a fair comparison? Independent Institute economist William Shugart suggests its not. The answer: The United States in the 1930s recognized that government-funded make-work jobs were not the same [...]
- Jun14
Public Servants?
Credit to the N&O for publishing this outstanding piece exposing some appalling information about North Carolina’s most lucrative state pensioner. In 2005, Charles R. Franklin Jr . filed for retirement after running the Albemarle Mental Health Center for 34 years. The first and only director of the public agency serving northeastern North Carolina – one [...]
- Jun11
BP Oil Spill Another Example of Government Failure
Statists across NC and the nation are pointing to the BP Gulf oil spill as another form of “market failure” and are exploiting this tragedy in an attempt to demonize “free markets” and insist that government is the only entity we can trust to safely run economic activity such as oil drilling. As Sheldon Richman points [...]
- 1Jun10
Inflated Demand + Restricted Supply = Higher Prices
In response to this editorial in the News & Observer, I sent the following letter: Louisa Warren notes the “astronomically high” cost of child care in North Carolina, but is noticeably uncurious as to why said costs might be so high. (Vital Aid to N.C. Jobseekers, June 3, 2010) North Carolina currently pours close to [...]
- Jun09
Hold the Bacon
Want to get NC state lawmakers as excited as a kid on Christmas morning? Tell them that some “free” federal government money is coming to the state. We’ve also seen how excited local citizens get when their U.S. Representative “brings home the bacon” in the form of some federal government projects to their districts. But are [...]
- Jun09
California Gets Something Right
The State of California has provided the rest of the country with plenty of lessons of what not to do, but yesterday voters made a wise decision: Californians aren’t interested in financing political campaigns with taxpayer money, even on an experimental basis. Proposition 15, defeated Tuesday, would have set up a voluntary pilot program for [...]
- Jun08
Unemployment Benefits Yet Another Wave in NC’s “Fiscal Tsunami”
Depending on a forthcoming vote by the U.S. Senate, extended unemployment benefits may soon run out. According to the N&O: The federal government’s phase-out of emergency unemployment benefits could halt unemployment checks for more than 164,000 out-of-work North Carolina residents over the next seven weeks, according to the state Employment Security Commission. The House of [...]
- Jun07
N.C. House Says No to Mega-Port
The N&O reports on a proposed mega-port endorsed by the N.C. Senate, but rebuked by the House. The notion of spending taxpayers’ money on a proposed North Carolina mega-port didn’t float many boats in the state House late last week, and that’s good news for the coastal environment and the state’s finances. This is a [...]
- Jun04
House Approves its Budget Plan, Senate Approves Irresponsible Debt
Shortly after midnight this morning, the N.C. House approved its 2010-11 budget proposal. You can read the bill language here, and the money report here. A few preliminary observations: The media is reporting that the House spending plan totals $18.9 billion. This is misleading and does not represent actual spending on state programs. The $18.9 [...]
- 2Jun03
State Health Plan May be Terminally Ill
The N&O today reports on something I highlighted three weeks ago in my “North Carolina’s Fiscal Tsunami” article: North Carolina’s State Health Plan is in woeful fiscal condition. The House is still plugging away on its budget proposal, but looming over lawmakers is a deep hole in the State Health Plan. Over the 2012-2013 fiscal years, [...]
- Jun03
N.C. House Ready for Vote on Their Budget Proposal
The N.C. House of Represetatives are readying to vote on their 2010-11 recommended budget today. Because the budget requires two votes recorded on seperate days, House members will likely record their first vote sometime today, and then the second vote shortly after midnight tonight. For a detailed roundup of the House proposal once it is [...]
- Jun02
N.C. Bill to Increase State Debt Moves Forward
Senate Bill 1378 was approved yesterday by the Senate Finance Committee, and is on the calendar for the Senate floor today. Amazingly, this bill would authorize more than $450 million in additional state debt without getting voter approval. In light of the fiscal tsunami of deficits, debt and unfunded liabilities facing North Carolina state government, one [...]
- May26
N.C. Lawmaker Choosing Hollywood Big Shots Over Small Businesses
As noted here before, the NC General Assembly is considering a bill (HB 713) that would further expand the state’s program of tax breaks to Hollywood production studios. Just last summer, Gov. Perdue signed into law SB 943 which increased the size of the tax break extended to these massive production studios. Between the two bills, annual tax breaks to [...]
- 1May25
NC Adds State Employees While Private Jobs are Lost
Yesterday I posted a short article detailing the employment trends in NC state government versus the state’s private sector since 2001. As most of you likely suspect, the trends show that state jobs grew at a relatively healthy pace while the private sector shed 50,000 jobs. Here’s the details from the article: The number of state [...]
- May25
N.C. Senate Budget Summary
The Civitas Institute has posted a summary of the N.C. Senate’s recommended budget for 2010-11. You can check it out here. Here’s a sample from the overview: Just one week into the 2010-11 “short” legislative session, the North Carolina State Senate released its recommended budget adjustments for the coming fiscal year that begins July 1. [...]
- May24
N.C. House to Hold Public Forum on State Budget
The N.C. House is hosting a public forum this evening to solicit feedback regarding their budget proposal for the fiscal year that begins July1. The N&O has the details: The House Appropriations Committee scheduled a statewide public hearing Monday night based at North Carolina State University in Raleigh. Community colleges in Sylva, Charlotte and Bladen [...]
- May20
Senate Budget Plan Moves Forward
The NC State Senate is slated today for a final vote on its 2010-11 budget proposal. The N&O reported on some of the details in this article. A few observations about the Senate’s budget plan: Total spending includes $18.99 billion outlined in the state budget, plus $1.04 billion in federal funds replacing state funds already [...]
- May19
No “April Surprise” for NC Tax Revenues; Budget Outlook Still Grim
Each budget year in North Carolina as the fiscal year enters its last couple of months, budget writers anticipate an “April surprise.” This surprise depends on tax collections for corporations and individuals filing their tax returns near the April 15 tax deadline. Sometimes the surprise is greater tax revenue than anticipated, other years the surprise [...]
- May18
Senate Budget Includes Sensible Small Business Tax Cuts
The North Carolina state Senate this morning released its recommended budget changes for 2010-11. You can view the legislation here, or view the money report here. One issue of considerable note tucked into the Senate’s proposal is a tax rate reduction on North Carolina “pass-through” businesses – like S-corps or partnerships – that file the [...]
- 1May17
The Myth of Consumer Spending
In virtually every news report about the economy, we hear reports on consumer spending – whether it be up or down. Consumer spending constitutes 70 percent of the economy, we are told, and therefore a boost in such spending is needed to spur economic growth. Liberal politicians also spout these lines when advocating for Keynesian [...]