State deficit spending

Recession

Recession (Photo credit: Anders V)

According to Scott Walker, one lesson from the recall election is that you can’t spend more than you have. That is true now and forever of all states which are not permitted deficit spending. It is NOT a new lesson. Only the Federal government can use deficit spending to stimulate the economy. States are required to raise taxes or lower spending to balance their budgets. In most previous recessions, it was a common practice for the Federal government to give money to the states so that they needed not to reduce expenditures or raise taxes so much in a recession making the recession worse. This time the GOP wants to make the recession worse so that the voters will vote for the Republicans in November.

O recession, our recession

Crowd gathering on Wall Street after the stock...

Crowd gathering on Wall Street after the stock market crash of October 1929. (Photo credit: Wikipedia)

Conceived on Wall Street
Birthed on Main Streets
Fathered by Bush
God-fathered by Nixon
O Great Recession, our recession
What made you great?
I expected you to disappear
Years ago, as your siblings did
Deep or shallow, long or short
Here today, gone tomorrow
Despite official pronouncements
You linger today and threaten
To stay and grow
And change your name
For the millions still in your grip
From Great Recession to Great Depression 2
For your long life
We must give thanks
Where thanks are due
To the Grand Old Party
The Republicans in Congress
And statehouses throughout America.