Kansas Shows What Happens If Far Right In Charge
By June of 2014, the results of Brownback’s economic reforms began to come in, and they weren’t pretty. During the first fiscal year that his plan was in operation, which ended in June, the tax cuts had produced a staggering loss in revenue—$687.9 million, or 10.84 percent. According to the nonpartisan Kansas Legislative Research Department, the state risks running deficits through fiscal year 2019. Moody’s downgraded the state’s credit rating from AA1 to AA2; Standard & Poor’s followed suit, which will increase the state’s borrowing costs and further enlarge its deficit.
Brownback had also promised that his tax cuts would vault Kansas ahead of its higher-taxed neighbors in job growth, but that, too, failed to happen. In Kansas, jobs increased by 1.1 percent over the last year, compared with 3.3 percent in neighboring Colorado and 1.5 percent in Missouri. From November to May, Kansas had actually lost jobs, and the labor participation rate was lower than when Brownback took office. The cuts did not necessarily slow job growth, but they clearly did not accelerate it. And the effects of Brownback’s education cuts were also glaring—larger class sizes, rising fees for kindergarten, the elimination of arts programs, and laid-off janitors and librarians.
Brownback is now in trouble in one of the reddest states in the country. This result should be used when any candidate proposes draconian cuts in services and shrinking of government.
Copyright 2014 Liberaland
By: Stuart Shapiro
Stuart is a professor and the Director of the Public Policy
program at the Bloustein School of Planning and Public Policy at Rutgers
University. He teaches economics and cost-benefit analysis and studies
regulation in the United States at both the federal and state levels.
Prior to coming to Rutgers, Stuart worked for five years at the Office
of Management and Budget in Washington under Presidents Clinton and
George W. Bush.
arc99 September 30th, 2014 at 13:01
Naturally, when confronted with his failure, Gov. Brownback resorted to the standard right wing fall-back strategy, e.g. a metaphorical equivalent of BENGHAZI!!!!!!!!!!!!!!
When states like North Dakota are doing well, it is despite the President. When states like the very red Kansas are faltering, it is because of the President.
Hopefully everyone is now clear on the concept of the “party of personal responsibility”. Republican screw-ups are the personal responsibility of the President.
http://www.kansascity.com/news/government-politics/article348062/Brownback-Obama-blame-game-as-Kansas-bond-rating-is-cut-amid-revenue-shortfall.html
Brownback blames the national economic climate and President Obama’s policies for the shortfall.
“What we are seeing today is the effect of tax increases implemented by the Obama administration that resulted in lower income tax payments and a depressed business environment,” Brownback said in a statement.
“The failed economic policies of the Obama administration are affecting states throughout the nation. It is more important than ever that we continue our focus on growing jobs and creating a business-friendly environment that benefits Kansans,” Brownback said.
Read more here: http://www.kansascity.com/news/government-politics/article348062/Brownback-Obama-blame-game-as-Kansas-bond-rating-is-cut-amid-revenue-shortfall.html#storylink=cpy
tracey marie September 30th, 2014 at 13:25
their stupidity and willfull ignorance is astounding.
tiredoftea September 30th, 2014 at 13:26
It is exceeded only by their hubris.
SteveD September 30th, 2014 at 15:47
It’s an absolute rule of economics that a monetarily non-sovereign entity such as Kansas cannot survive long-term without money coming in from outside its borders. Like Kansas, you and I are monetarily non-sovereign. To survive long term, we must have income. We could not survive by paying taxes to ourselves.
Similarly, no city, county or state in America can survive long term by taxing itself.
The long term survival of any monetarily non-sovereign government requires money coming in from outside its borders. North Dakota “survives” by exporting (i.e. importing dollars). Long term, most of the American States can only survive by having a positive balance of payments with the federal government.
The larger the federal domestic deficit, the healthier are the states. The economic formula is: Federal Deficits + Net Exports = Private Saving (Income).
(Of course private banks create dollars by lending. Actually, banks create most of the dollars. But these all are temporary dollars. However, when the loans are repaid, those bank dollars disappear. The only permanent dollars come from federal deficit spending.)
arc99 September 30th, 2014 at 13:01
Naturally, when confronted with his failure, Gov. Brownback resorted to the standard right wing fall-back strategy, e.g. a metaphorical equivalent of BENGHAZI!!!!!!!!!!!!!!
When states like North Dakota are doing well, it is despite the President. When states like the very red Kansas are faltering, it is because of the President.
Hopefully everyone is now clear on the concept of the “party of personal responsibility”. Republican screw-ups are the personal responsibility of the President.
http://www.kansascity.com/news/government-politics/article348062/Brownback-Obama-blame-game-as-Kansas-bond-rating-is-cut-amid-revenue-shortfall.html
Brownback blames the national economic climate and President Obama’s policies for the shortfall.
“What we are seeing today is the effect of tax increases implemented by the Obama administration that resulted in lower income tax payments and a depressed business environment,” Brownback said in a statement.
“The failed economic policies of the Obama administration are affecting states throughout the nation. It is more important than ever that we continue our focus on growing jobs and creating a business-friendly environment that benefits Kansans,” Brownback said.
Read more here: http://www.kansascity.com/news/government-politics/article348062/Brownback-Obama-blame-game-as-Kansas-bond-rating-is-cut-amid-revenue-shortfall.html#storylink=cpy
tracey marie September 30th, 2014 at 13:25
their stupidity and willfull ignorance is astounding.
tiredoftea September 30th, 2014 at 13:26
It is exceeded only by their hubris.
SteveD September 30th, 2014 at 15:47
It’s an absolute rule of economics that a monetarily non-sovereign entity such as Kansas cannot survive long-term without money coming in from outside its borders. When the federal government spends dollars domestically, it adds those dollars to the money supply within states (and when people pay taxes to the federal government, this reduces the money supply within states).
Like Kansas, you and I are monetarily non-sovereign. To survive long term, we must have income. We could not survive by paying taxes to ourselves.
Similarly, no city, county or state in America can survive long term by taxing itself.
The long term survival of any monetarily non-sovereign government requires money coming in from outside its borders. North Dakota “survives” by exporting (i.e. importing dollars). Most of the American States can only survive by having a positive balance of payments with the federal government.
The larger the federal domestic deficit, the healthier are the states. The economic formula is: Federal Deficits + Net Exports = Private Saving (Income).
(Of course private banks create dollars by lending. Actually, banks create most of the dollars. But these all are temporary dollars. When the loans are repaid, those bank dollars disappear. The only permanent dollars come from federal deficit spending.)
mea_mark September 30th, 2014 at 13:14
The best thing Kansas has done for the nation was to clearly show, here in the states, how horrible austerity and the economic plans of the far right really are. Apparently the austerity in Europe and its failures was just to far away for Americans to understand and relate to. Now we can proudly look at our own failures and begin to understand that when you cut back on spending, everybody has to cut back on spending and the economy begins to collapse.
mea_mark September 30th, 2014 at 13:14
The best thing Kansas has done for the nation was to clearly show, here in the states, how horrible austerity and the economic plans of the far right really are. Apparently the austerity in Europe and its failures was just to far away for Americans to understand and relate to. Now we can proudly look at our own failures and begin to understand that when you cut back on spending, everybody has to cut back on spending and the economy begins to collapse.
tiredoftea September 30th, 2014 at 13:23
“This result should be used when any candidate proposes draconian cuts in services and shrinking of government.” They haven’t learned this lesson since Reagan! Now, Laffer’s flawed thesis has, again, been proven wrong. It is the definition of lunacy, but it’s the perfect economic model from the lunatic fringe.
tiredoftea September 30th, 2014 at 13:23
“This result should be used when any candidate proposes draconian cuts in services and shrinking of government.” They haven’t learned this lesson since Reagan! Now, Laffer’s flawed thesis has, again, been proven wrong. It is the definition of lunacy, but it’s the perfect economic model from the lunatic fringe.
tracey marie September 30th, 2014 at 13:24
Wisconsin is another example, walker cut taxes to corporations and the wealthy then borrowed money to close the deficit.
Dwendt44 September 30th, 2014 at 13:30
AND push the true deficit off a couple of years so that Walker is in Washington and the blame can be transferred to the next governor.
tracey marie September 30th, 2014 at 14:01
of course
William September 30th, 2014 at 13:45
Hey relax. Everything is going to be fine. Trickle down will kick in any time now.
tracey marie September 30th, 2014 at 14:00
:)
StoneyCurtisll October 5th, 2014 at 12:20
Any year now..:)
tracey marie September 30th, 2014 at 13:24
Wisconsin is another example, walker cut taxes to corporations and the wealthy then borrowed money to close the deficit.
Dwendt44 September 30th, 2014 at 13:30
AND push the true deficit off a couple of years so that Walker is in Washington and the blame can be transferred to the next governor.
tracey marie September 30th, 2014 at 14:01
of course
William September 30th, 2014 at 13:45
Hey relax. Everything is going to be fine. Trickle down will kick in any time now.
tracey marie September 30th, 2014 at 14:00
:)
StoneyCurtisll October 5th, 2014 at 12:20
Any year now..:)
Suzanne McFly September 30th, 2014 at 13:29
Republicans obviously do not support smaller government (policies that support placing laws upon my uterus is evidence of that), they actually support a smaller educated population the will question the policies supported by our elected officials.
juicyfruityyy September 30th, 2014 at 13:29
Brownback and the Coke Brothers did exactly what they had intended to do. Not an accident.
Suzanne McFly September 30th, 2014 at 13:29
Republicans obviously do not support smaller government (policies that support placing laws upon my uterus is evidence of that), they actually support a smaller educated population the will question the policies supported by our elected officials.
juicyfruityyy September 30th, 2014 at 13:29
Brownback and the Coke Brothers did exactly what they had intended to do. Not an accident.
William September 30th, 2014 at 13:31
Thanks Obama.
William September 30th, 2014 at 13:31
Thanks Obama.
Bunya September 30th, 2014 at 14:50
Kansas is crawling with morons, too stupid to vote in their own self interest. If he’s re-elected, then Kansas deserves him.
Bunya September 30th, 2014 at 14:50
Kansas is crawling with morons, too stupid to vote in their own self interest. If he’s re-elected, then Kansas deserves him.
Hal Donahue September 30th, 2014 at 15:31
Conservatism fails wherever tried
Hal Donahue September 30th, 2014 at 15:31
Conservatism fails wherever tried
majii September 30th, 2014 at 20:28
Although everything in this post is true, Brownback and his buddies are still saying that it will take more time for the tax cuts to work. I’ve taken many graduate level economics courses, but nothing I studied supports Brownback’s claim that he needs “more” time. His economic policies have had a minimum of three years to work. If they haven’t worked at this point, they won’t. The “more” time meme is a very lame excuse Brownback’s using to cover for his incompetence. In spite of all of the evidence that trickle-down economics does not work, Brownback and other GOPTP governors and politicians are still obsessed with it. My governor, the ethically-challenged Nathan Deal, and his RW buddies who control the state legislature have driven GA’s economy into the ground, and they’re still lying, saying that his policies have spurred “tremendous” economic growth here.
Yeah, right, if one can call having the highest unemployment rate in the nation economic growth. The truth is that on every measure of well-being and economic progress, GA is at the bottom of the list of the 50 states.
majii September 30th, 2014 at 20:28
Although everything in this post is true, Brownback and his buddies are still saying that it will take more time for the tax cuts to work. I’ve taken many graduate level economics courses, but nothing I studied supports Brownback’s claim that he needs “more” time. His economic policies have had a minimum of three years to work. If they haven’t worked at this point, they won’t. The “more” time meme is a very lame excuse Brownback’s using to cover for his incompetence. In spite of all of the evidence that trickle-down economics does not work, Brownback and other GOPTP governors and politicians are still obsessed with it. My governor, the ethically-challenged Nathan Deal, and his RW buddies who control the state legislature have driven GA’s economy into the ground, and they’re still lying, saying that his policies have spurred “tremendous” economic growth here.
Yeah, right, if one can call having the highest unemployment rate in the nation economic growth. The truth is that on every measure of well-being and economic progress, GA is at the bottom of the list of the 50 states.