Critical Questions: Should the Federal Government Bail Out State and Local Governments?

Craig Huey Economics, Government, Congress, and Politics, Politics 11 Comments

6 Critical Questions: Should the Federal Government Bail Out State and Local Governments?

Some state and local governments are asking for taxpayers to rescue them from a financial crisis.

For example, California and New York have racked up historic debt. Florida and Texas on the other hand are not in a financial crisis.

So, should states like California and New York receive major federal bailouts?

Let’s look at these 6 questions…

Question 1: Should taxpayers in well-run states bail out those states that were irresponsible in their spending?

These above “blue” states with pro-socialist are asking for federal bail outs as they have been over-spending for years and have now massive budget shortages.

But most states have been responsible with their spending. Let’s look at Florida and Texas.

Lowest income tax

These above red states have pro-free enterprise policies and are not asking for federal bailouts. They run their states correctly.

Question 2: Did you know that both New York and California follow socialist/collectivist policies with the highest amount of taxes and highest amount of regulations?

Question 3: Did you know that Florida and Texas have the lowest amount of regulations and lowest taxes which promote entrepreneurship and business growth? And the states like California and New York don’t?

Question 4: Why Do New York and California still have lockdowns of individuals, employees, businesses and churches? And Florida and Texas are now open and free?

Question 5: Why do Florida and Texas allow people to choose – to work, to do business and to allow churches to operate?

Question 6: Why have 2 million people–and thousands of businesses–left New York and California… and why are they moving to other states such as Florida and Texas?

Fact: People are leaving pro-socialist blue states and are flocking to pro-free enterprise states where they find a much more palatable cost of living and a much friendlier business environment with jobs and growth.

The political difference: The politicians elected.

The economic difference: Socialism vs. fee enterprise.

The social difference: statism vs. individual freedom.

What do you think? Should the federal government bail out the uncontrollable, socialist states?

Email me at [email protected].

Comments 11

    1. Absolutely no bailout whatsoever. The COVID19 pandemic has exposed the irresponsible governance of Blue States who practice socialism versus free-enterprise/individual liberty. I live in CA and it has spent tax payer dollars irresponsibly for several decades (http://www.capoliticalreview.com/top-stories/the-golden-states-record-breaking-deficit/). As well, the state has amassed a long term debt, carried “off book”, of $1.4 based on a Forbes article I read. Of that $1.4T, $1T was the unfunded liability of the state civil servant retirement fund and $400B was for poor state operations. Other studies I have read from ALEC and Mises show that the best run states are Republican. These Red States practice fiscal conservatism and follow the concept that “the best government is that which governs the least.” CA does not follow that principle. Rather, I am now rebranding the Golden State as Communist California becasue it is nowhere near “golden” any more. I wish I was wrong, but I cannot see the reality of living in CA any differently.

  1. There is the Washingtonian Constitution of the Federal Republic and there is the Jeffersonian Constitution of the Democracies or states. Then there is the Hamiltonian Unwritten Constitution akin to his works and like the English Unwritten Constitution. Hamilton would take state debts to promote a new nation that could be underwritten. If the country would allow a separation of the states, then the coastal states in debt could become a new confederacy. This is unlikely a goal of the coastal states at this point. At some time in the future the two would be rejoined. This is the only approach I can think of based on our nations history.

  2. There is the Washingtonian Constitution of the Federal Republic and there is the Jeffersonian Constitution of the Democracies or states. Then there is the Hamiltonian Unwritten Constitution akin to his works and like the English Unwritten Constitution. Hamilton would take state debts to promote a new nation that could be underwritten. If the country would allow a separation of the states, then the coastal states in debt could become a new confederacy. This is unlikely a goal of the coastal states at this point. At some time in the future the two would be rejoined. This is the only approach I can think of based on our nations history.
    This is not a duplicate comment, but happens all the time.

  3. You don’t bail out Sanctuary Rebellious States like Supreme Leader Gov. Newsom of Calif. Who by himself has destroyed our State.

  4. Absolutely NO BAILOUTS for states that have been ruined by the elected officials that have devoured the people and destroyed the state itself. I also live in California, & the Liberal democrat politicians (that unreasonable people have voted in and keep voting them in who knows why) make our lives more stagnant and chained up as days, months, and years go by. I am astounded at how far down the drain California has gone. The only way to teach them lessons will be to give them no funds, no bailouts. They have only themselves to blame and first part of the blame goes to the ignorance’s of voters who seem yo love the state as it is. So, they too should suffer consequences. And, this has been going on for years. It didn’t come about because of COVID-19 either.

  5. NO bailouts. NONE. Let the people that voted these clowns into office have a wake-up call (if possible). Do NOT appease these leftist governors.

  6. I am a Californian, born and bred, and I cry for this state that was once Golden, and is now a sorry mess. Gov. Gruesome Newsom should be ashamed of himself in even asking for taxpayer funds to cover his misdeeds. If he can spend billions on illegal aliens, he deserves nothing. For decades, public employee unions have gotten lucrative contracts for public employees, who are paid by taxpayers, many of whom are paid less than those they support. Ridiculously high retirement packages, some with medical as well, are unsustainable. Gov Moonbeam Brown allowed the unions to come in during his first terms in the 70’s, which was a huge mistake, but he liked their money to finance his campaigns. No bailout for California, New York, or any other irresponsibly run state.

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