We’re all aware of the gloomy economic news. Unemployment in NC is 7.9 percent. Tight credit markets are spawning layoffs and massive contractions in the economy. Last month, in response to the economic downturn, Governor Easley asked state agencies to prepare plans for cutting state spending by 3, 5 and 7 percent.
So much for living in reality. On Tuesday, the Council of State fast-tracked $742 million in bonds for university buildings, prisons and other pet legislative projects such as a polar bear exhibit ($2.7 million) at the N.C. Zoo.
Moving forward with big ticket items in a shaky economy is never good advice for citizens – or governments. Governor Easley says the funding will help construction workers? Maybe minimally. Alleged hort-term fixes most certainly will have adverse long-term effects for taxpayers by further constricting credit markets and adding to public debt at a time when many taxpayers are out of work or on reduced incomes. All that talk about a tight economy, belt tightening and the need for sacrifice? Don’t expect it to apply to your N.C. state government.
Bob Luebke
If the construction is for the overall public benefit and necessary, then yes, I’m for it. However, in this budget climate, that kind of spending should be delayed.
Joaquin,
Excusing such spending under the guise of “overall public benefit” is a dangerously vague criteria. Slick politicians can spin virtually any government project to be for the “overall public benefit.” Remember the Randy Parton Theatre?
Besides, the “overall” public will not benefit. These government projects benefit some at the expense of others; others who would not otherwise voluntarily support such endeavors.
Meanwhile, tons of steel, concrete, labor and countless other resources are diverted away from productive uses in the private sector – slowing economic growth and making many worse off, especially lower-skilled workers at the margins of employment.
And let us not forget that after this initial spending spree expires, we are still left having to spend millions of tax dollars to maintain and staff the various buildings and polar bear exhibits into the unforseeable future.