How many people would take a gift of a $1,000 and go out and buy a $60,000 sports car if they could not afford the monthly payments? Yet that is exactly what many state and local leaders seem to be asking us to do with the federal "stimulus" package.
Federal money nearly always comes with strings attached. In fact, most federal transportation grants require a 20-percent (or greater) local match. "Free money" sounds nice, but what happens when state and local governments cannot afford the match?
If Milwaukee County receives $50 million for infrastructure under this formula, taxpayers in the county would have to come up with an extra $10 million. Does anyone think we have an extra $10 million in this budget climate?
It is even worse if these federal funds are used for operating expenses as that will create even larger holes in future budgets. Bailing out failed governments is not the same as stimulating the economy.
A real economic stimulus would put money in the hands of consumers - and not the government. Tax cuts work.
Tax cuts worked for Ronald Reagan in the 1980s and they are what John F. Kennedy called for in the 1960s. In each case, our nation climbed out of a recession by putting more money back into the hands of the taxpayers.
The choice is simple: do we bail out failed governments with budget deficits or do we stimulate the economy and put more people to work with real tax cuts at the federal, state and local levels? I choose to put people back to work!
Scott Walker is the Milwaukee County Executive. He is responding to Thursday's Milwaukee Biz Blog by County Board Chairman Lee Holloway.
8 Comments
No mention of the strings attached to this bailout by Mr. Halloway. The contrast of long term vision versus short term reaction could not be made more clear.
Well, Bob, you and I agree on one thing. The contrast is indeed clear. Maybe you missed what happened in the last election.
Mr. Walker:
I appreciate your common sense in resolving the critical issues facing the State of Wisconsin, not only Milwaukee County. We need more leaders like you who want to fix the hole in the boat, and not constantly bail it out.
Lead on!
Hi Bob. Would you share more of your idea with the last election note?
I appreciate Mr. Walkers position and wonder why government on all levels insists the taxpayer can fund this hypothetical bailout - and I know I'm not alone with this question. Too many politicians have run amok and consider the president-elect to be a Robin Hood, or is it Santa Claus?
Re: news that Lee Holloway will bypass Scott Walker to make sure that Milwaukee County is
represented in the national stimulus plan. Two reactions. First, congratulations and thank you to Mr. Holloway. Second, maybe Scott Walker does have a good idea - do nothing and eventually someone will be forced to do it for you. Now that's management!
Mr. Walker. If you were playing poker would you fold with a full house?
To Bob J. Re: last election. Sure. The last election was a clear repudiation of the economic policies of the past eight years. This from the latest issue of the Economist: "The economy is in dreadful shape. Wise folk concur that a swift and powerful stimulus is required. The public are receptive: nearly two-thirds say the government should spend more to revive the economy". For our County Executive to play the speed bump only hurts us, the people who live and work here.