Resurrecting the Myth
A column in the Sun by Atwood "Woody" Collins III, Chairman of the Greater Baltimore Committee, this morning once again resurrects the myth of the recession-proof economy. Sadly, the same points as always are trotted out to make this point: the federal workforce and federal spending, a stronger housing market, our medical facilities, and a diversified economy.
Of course, as I said back in April, these points can merely give on the impression that an economy is "recession-proof." Just because Maryland enjoys lower unemployment than most states given its location near Washington and the number of federal and federal contracting jobs does not mean that the economy is strong. One need only look at local business, local restaurants, local shopping facilities, to notice that they aren't as crowded anymore. Regardless of unemployment and the job market and regardless of the housing market, we are in a recession, one that started with O'Malley's tax increases and reckless spending hikes, and has continued with the more recent sharp decline in the global economy. We are in a recession just like everybody else, only exacerbated by irresponsible leadership in our state government.
Collins also concludes with this silly piece:
While Maryland is better position than most, the perpetuation of this myth of a recession-proof economy is doing little but attempting to give political cover to liberal politicians who misguidedly think that we can tax and spend our way out of this climate. And not only is that turning out to be politically unpopular, but it's also bad leadership. You cannot continue to do what got you into this mess and think that it is going to magically get you out of it.
Maryland and Marylanders need tax cuts across the board, and Maryland government needs a drastic reduction in spending. Now.
Of course, as I said back in April, these points can merely give on the impression that an economy is "recession-proof." Just because Maryland enjoys lower unemployment than most states given its location near Washington and the number of federal and federal contracting jobs does not mean that the economy is strong. One need only look at local business, local restaurants, local shopping facilities, to notice that they aren't as crowded anymore. Regardless of unemployment and the job market and regardless of the housing market, we are in a recession, one that started with O'Malley's tax increases and reckless spending hikes, and has continued with the more recent sharp decline in the global economy. We are in a recession just like everybody else, only exacerbated by irresponsible leadership in our state government.
Collins also concludes with this silly piece:
In these extremely challenging times, it's clear that our region is in a better position than many to weather the worst effects of this storm. And our remarkably resilient nation, as it always has in difficult times, will recover from this period and emerge stronger and wiser.While we always come out stronger, I have a funny feeling given who sits in positions of power in our state and federal governments, we sure won't come out any wiser. If economic downturns made leaders wiser, we certainly would not have seen O'Malleynomics unleashed on the citizenry of Maryland, and the corresponding irresponsible tax hikes and spending increases that have gone with it. I am under no presumption that the Democratic Congress and the Obama Administration are going to learn anything either, particularly in light of Obama's promised tax increases that are going to impact the economic plight of every individual American citizen for the worse.
While Maryland is better position than most, the perpetuation of this myth of a recession-proof economy is doing little but attempting to give political cover to liberal politicians who misguidedly think that we can tax and spend our way out of this climate. And not only is that turning out to be politically unpopular, but it's also bad leadership. You cannot continue to do what got you into this mess and think that it is going to magically get you out of it.
Maryland and Marylanders need tax cuts across the board, and Maryland government needs a drastic reduction in spending. Now.
Labels: economics, Maryland, O'Malley, O'Malleynomics, Taxes, wasteful spending
posted by Brian Griffiths at 9:36 AM
2 Comments:
Brian -
I don't know if you can say that we always come out stronger. Perhaps what you meant was the government always comes out stronger. My guess is that the longer and harder this recession turns out to be, the more expansive government is going to become. Everywhere you look, at Federal and State levels, it seems politicians are rhetorically setting the table for bigger government as the solution.
That's what I'm scared of.
I am not persuaded that the relatively minor tax increases (1% marginal on sales/use, about 1% before federal deduction on upper-income taxpayers) put Maryland into a slump. I do not see evidence of marginal income or purchasing shifting across state lines relative to before the tax increases. I would suspect other acknowledged forces majeures such as macroeconomic trends and nationwide real estate softness. But these are mere hypothesis on my part.
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