"Comparative Economics" is usually transacted against 2 nations as a means of evaluating their relative strengths and how their divergent economic policies and systems allow them to take advantage of their resources in their quest for maximized economic advantage for the individuals living within.
On a recent family visit to South Carolina I was treated to the key political debates that are rocking the state. As I read through my grandmother's paper I saw how the Republican Governor of South Carolina was being sued by a college student for REFUSING to take more of the Federal Debt Stimulus Package offered up by the Obama Administration and Federal Democrats. Where as the previous protest action orchestrated by the leftist activist group "Color Of Change" attempted to paint Governor Sanford as the modern day "Governor George Wallace"the present action attempted a more strategic tact.
Governor Sandford is rejecting the Federal Debt Stimulus money because of the strings that are attached to it. In order to accept the money the states must agree to expand their spending on certain targeted communities, usurping the state authority to make their own decisions.
Sandford would like to make use of these federal funds to pay down state debt rather than incur new obligations.
The local paper also included a letter to the editor from the president of Winthrop College. He argued that with the federal debt money he would be able to hire 4 new officers for 2 years and purchase a few more patrol cars, resulting in the improved security for his student population. The "2 years" of funding seemingly escaped him. In 2 years from now he will then face the day of reckoning in which he would have to find the funds to employ these new officers. Here is a story of how certain educators are suing the governor.
There was another story about how $2 million in federal debt money could be used to defray the expected $500 per semester increase in tuition that was coming their way. The students that were interviewed saw nothing but positive in accepting the gratis from the federal government.
Thus in South Carolina there is a contengent of interest groups who essentially see the stuborn Republican governor turning down "free money" that they could use to on an immediate basis.
CALIFORNIA - THE MODEL PROGRESSIVE STATE
In the backdrop of the conflict with South Carolina is the raging fiscal forest fire known as the state of California. For as long as I remember the state of California has been sold to America as the "beacon of Progressivism" . What ever happens in California later gets adopted in the rest of the nation - we were told.
As I monitor the situation with CA I struggle to understand if the very people who told us all of the above are watching the fatal car crash that the present budget situation in California represents. They have a present shortfall of between $30 billion and $40 billion, depending on the report that is viewed.
Where as the "Color Of Change" was complaining about how a few hundred million dollar shortfall would lead to a few thousand layoffs in the South Carolina school system - there by hurting Black kids.......the state of California is poised to lay off 26,000 education related employees. Further they will have to prune at least $30 billion from their budget.
THERE WILL BE NO PROTESTS FROM "COLOR OF CHANGE" in response to these actions. Despite having a Republican Governor - he and the state legislature is acting more in line with their progressive views than contrary to them. No need to put them in line.
THE FUTURE OF THE UNITED STATES
I struggle to understand what about the flashing dashboard lights are not enough warning to some people. General Motors and Chrysler were not supposed to fail. The corporate pensions that they offered were supposed to be preferrable to the capitalist leading 401K plan, which was rife with risk. The pension plans of these major corporations will not be funded after bankruptcy and will be turned over the the federal government for servicing.
Some people confuse their ability to VOTE THEMSELVES A RAISE on a temporary basis with the creation of a FINANCIALLY VIABLE SYSTEM that is able to endure.
The upper limits of their willingness to expand is defined by what we see in California today.
The public is not inclined to curtail their demands of the system until the SYSTEM is proven to be insolvenet.
In my view the great flaw of centralized economics as compared to pushing obligations toward the edge is that by centralizing the obligations with the expectation of distributing more benefit - the entire system gets subject to a collapse when the lynch pin is made to collapse. In the long run those wh oare most dependent upon the system are harmed the most.
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