John Hood assesses the first year of the Perdue administration in this piece. Here’s a sample:
We’re all tempted by wishful thinking when times are tough. Perdue and her aides ought to resist the urge. Their first year in office was awfully rough. They didn’t dig the fiscal and ethical holes left by Mike Easley. But they failed to negotiate them effectively. Early on, Perdue seem to signal that she’d be against any significant tax increases in the midst of recession. Later, she signed one of the largest tax increases in North Carolina history, and continues to sing the praises of federal borrowing as a solution to the state’s problems.
Hood’s piece is worth your time. On the broader subject of state spending habits, expect a slew of governors to turn to the feds for more cash. Politico.com reports that California Gov. Arnold Schwarzenegger (a Republican who may as well be a liberal Democrat) and David Paterson (a liberal Democrat) are already wagging their fingers at Congress, saying their states need help.
This country’s downward economic spiral won’t end until there is a fundamental change in economic policy. We must return to an embrace of capitalism, limited regulation, and tax policy that provides stability and opportunity to entrepreneurs who, only then, will invest, expand, and employ more workers. Here are the thoughts of one of the most ardent supporters of capitalism — Steve Forbes — on what leads to crisis and what leads prosperity.
