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The Texas miracle goes bust - 1/8/2011 10:02:17 PM

tazzygirl

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Paul Krugman

Saturday, January 08, 2011
These are tough times for state governments. Huge deficits loom almost everywhere, from California to New York, from New Jersey to Texas.

Wait -- Texas? Wasn't Texas supposed to be thriving even as the rest of America suffered? Didn't its governor declare, during his re-election campaign, that "we have billions in surplus"? Yes, it was, and yes, he did. But reality has now intruded, in the form of a deficit expected to run as high as $25 billion over the next two years.

And that reality has implications for the nation as a whole. For Texas is where the modern conservative theory of budgeting -- the belief that you should never raise taxes under any circumstances, that you can always balance the budget by cutting wasteful spending -- has been implemented most completely. If the theory can't make it there, it can't make it anywhere.

How bad is the Texas deficit? Comparing budget crises among states is tricky, for technical reasons. Still, data from the Center on Budget and Policy Priorities suggest that the Texas budget gap is worse than New York's, about as bad as California's, but not quite up to New Jersey levels.

The point, however, is that just the other day Texas was being touted as a role model (and still is by commentators who haven't been keeping up with the news). It was the state the recession supposedly passed by, thanks to its low taxes and business-friendly policies. Its governor boasted that its budget was in good shape thanks to his "tough conservative decisions."

Oh, and at a time when there's a full-court press on to demonize public-sector unions as the source of all our woes, Texas is nearly demon-free: Less than 20 percent of public-sector workers there are covered by union contracts, compared with almost 75 percent in New York.

So what happened to the "Texas miracle" many people were talking about even a few months ago?

http://www.post-gazette.com/pg/11008/1116332-109.stm#ixzz1AW0CKGCi

Not my question, Krugman's question. Read the link to find out.

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RE: The Texas miracle goes bust - 1/8/2011 10:29:32 PM

Aylee

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I think that he explained what happened in Texas pretty well.

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RE: The Texas miracle goes bust - 1/9/2011 12:34:29 AM

Charles6682

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I guess the whole conservative economic policy in Texas is working out so well.How about this too.Flordia is just right about up there with Texas fiscal conservaitve ideas.Flordia is so happy about there buisness friendly climate and low taxes.Yet,Flordia has a 3.5 billion dollar defict.Plus the unemployment rate has been at around 12% for about the past year or so.How can this be?I mean,Republicans basically ruin,I mean run the state of Florida.Geez,I guess maybe all this Fiscal Conservative talk and defict reduction is just good campaign talk before an election.In reality though,it dosent seem to be working so well.Imagine that!

< Message edited by Charles6682 -- 1/9/2011 12:35:36 AM >

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RE: The Texas miracle goes bust - 1/9/2011 1:06:46 AM

popeye1250

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Tazzy, that's funny, people "demonizing" unions and their members who make $60 k per year while Press Secretaries are "underpaid at $172,200 k!" according to the Nutty Professor.

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RE: The Texas miracle goes bust - 1/9/2011 5:36:26 AM

KenDckey

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Typical politician LIAR They tell you what you want to hear, not the truth

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RE: The Texas miracle goes bust - 1/9/2011 6:40:21 AM

xBullx

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Ken's got it here... This age old debate about conservative vs. liberal is a waste of breath.

I suspect we should be addressing a good many of our modern politicians as either idealists or pragmatists, with disingenuous motives.

In any event the current crop no matter their affiliation seem to be little more than self-serving, power/money hungry opportunists.

It seems they think their primary duty is to gather all the money and advantage they can for their supporters and district (see Frank Murtha, at least he would admit it). How is that any different than a man robbing a bank to finance his business dreams that, by the way, employees others?

quote:

ORIGINAL: KenDckey

Typical politician LIAR They tell you what you want to hear, not the truth

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RE: The Texas miracle goes bust - 1/9/2011 6:43:46 AM

pahunkboy

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From: Central Pennsylvania
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..yes and no.

Texas has OIL. And gas is heading to $5 a gallon. They will not be broke.

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Post #: 7

RE: The Texas miracle goes bust - 1/9/2011 7:00:35 AM

RacerJim

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Joined: 1/1/2004
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quote:

ORIGINAL: tazzygirl

Paul Krugman

Saturday, January 08, 2011
These are tough times for state governments. Huge deficits loom almost everywhere, from California to New York, from New Jersey to Texas.

Wait -- Texas? Wasn't Texas supposed to be thriving even as the rest of America suffered? Didn't its governor declare, during his re-election campaign, that "we have billions in surplus"? Yes, it was, and yes, he did. But reality has now intruded, in the form of a deficit expected to run as high as $25 billion over the next two years.

And that reality has implications for the nation as a whole. For Texas is where the modern conservative theory of budgeting -- the belief that you should never raise taxes under any circumstances, that you can always balance the budget by cutting wasteful spending -- has been implemented most completely. If the theory can't make it there, it can't make it anywhere.

How bad is the Texas deficit? Comparing budget crises among states is tricky, for technical reasons. Still, data from the Center on Budget and Policy Priorities suggest that the Texas budget gap is worse than New York's, about as bad as California's, but not quite up to New Jersey levels.

The point, however, is that just the other day Texas was being touted as a role model (and still is by commentators who haven't been keeping up with the news). It was the state the recession supposedly passed by, thanks to its low taxes and business-friendly policies. Its governor boasted that its budget was in good shape thanks to his "tough conservative decisions."

Oh, and at a time when there's a full-court press on to demonize public-sector unions as the source of all our woes, Texas is nearly demon-free: Less than 20 percent of public-sector workers there are covered by union contracts, compared with almost 75 percent in New York.

So what happened to the "Texas miracle" many people were talking about even a few months ago?

http://www.post-gazette.com/pg/11008/1116332-109.stm#ixzz1AW0CKGCi

Not my question, Krugman's question. Read the link to find out.

Quoting Mr. Krugman from the above linked article:

"and Texas may [my emphasis] have a $25 billion hole to fill. Now what?"

Now what? How about you, Mr Krugman, own up to the fact that you based your entire article on an a$$umption?

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Post #: 8

RE: The Texas miracle goes bust - 1/9/2011 7:06:38 AM

pahunkboy

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Which begs the question- which state is solvent?

....can you say- North Dakota? Which has its own bank. Wow. How did that happen?

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Post #: 9

RE: The Texas miracle goes bust - 1/9/2011 8:26:30 AM

tazzygirl

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Joined: 10/12/2007
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quote:

Quoting Mr. Krugman from the above linked article:

"and Texas may [my emphasis] have a $25 billion hole to fill. Now what?"

Now what? How about you, Mr Krugman, own up to the fact that you based your entire article on an a$$umption?

by Ross Ramsey
January 6, 2011

There is general agreement, though, that there is a shortfall of between $15 billion and $28 billion. As soon as Combs presents her report and lawmakers are sworn in the next day, they can get to work on filling that hole.

Texas is a balanced-budget state. That means the Legislature generally can't spend more money than the comptroller says will be available during a particular two-year period. (It can adopt a deficit budget, but only with a four-fifths majority — an unlikely outcome in a government controlled by limited-government conservatives.)

It doesn't matter whether the comptroller is right or not, at least for budget purposes: Her numbers are the official ones. "Once it comes from the comptroller, you have to trust it," says former Lt. Gov. Bill Ratliff, also a former chairman of the Senate Finance Committee.

http://www.texastribune.org/texas-taxes/budget/estimating-how-much-tx-will-collect-is-a-dark-art/

25 billion is the estimate most are going with until Monday.

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If you want it sugar coated, dont ask me what i think! It would violate TOS.

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Post #: 10

RE: The Texas miracle goes bust - 1/9/2011 8:31:25 AM

pahunkboy

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Tazz,

Consider that Texas is a state by treaty, the only one. It is renewed annually. Texas could easily not renew the treaty- and coin its own money- and they do have oil to back it up with.
Texas is one of 2 states that has any allodial titled land in it.

When the hunt brothers ran up silver and cornered the silver market- (which was legal BTW) the goal was to make it for money in Texas.

Today- that is not as necessary - as the banks fiat is crashing in- with no real assets to back the banks.

Texas tho does have infrastructure- oil- and a population that in general are hard workers.

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Post #: 11

RE: The Texas miracle goes bust - 1/9/2011 8:43:33 AM

tazzygirl

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What you are saying is that the great state of Texas owns all that oil.

Texas tho does have infrastructure- oil- and a population that in general are hard workers.

And a population that is booming. Consider that.

_____________________________

Telling me to take Midol wont help your butthurt.
RIP, my demon-child 5-16-11
Duchess of Dissent 1
Dont judge me because I sin differently than you.
If you want it sugar coated, dont ask me what i think! It would violate TOS.

(in reply to pahunkboy)

Post #: 12

RE: The Texas miracle goes bust - 1/9/2011 8:49:46 AM

pahunkboy

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From: Central Pennsylvania
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Pennsylvania, has a jack pot of natural gas.

Now- PA needs better laws- per the water pollution that the extraction causes.

Texas could be its own country. PA has lost the ability. (sadly)

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Post #: 13

RE: The Texas miracle goes bust - 1/9/2011 8:50:38 AM

tazzygirl

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PA! Texas does not own the oil! People, companies, ect, own the oil!

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Telling me to take Midol wont help your butthurt.
RIP, my demon-child 5-16-11
Duchess of Dissent 1
Dont judge me because I sin differently than you.
If you want it sugar coated, dont ask me what i think! It would violate TOS.

(in reply to pahunkboy)

Post #: 14

RE: The Texas miracle goes bust - 1/9/2011 9:04:15 AM

pahunkboy

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quote:

ORIGINAL: tazzygirl

PA! Texas does not own the oil! People, companies, ect, own the oil!

Which can be TAXED.

unlike PAs gas find- so far...

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Post #: 15

RE: The Texas miracle goes bust - 1/9/2011 9:05:01 AM

tazzygirl

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rofl

fantasy land yet again.

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Telling me to take Midol wont help your butthurt.
RIP, my demon-child 5-16-11
Duchess of Dissent 1
Dont judge me because I sin differently than you.
If you want it sugar coated, dont ask me what i think! It would violate TOS.

(in reply to pahunkboy)

Post #: 16

RE: The Texas miracle goes bust - 1/9/2011 9:32:09 AM

pahunkboy

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From: Central Pennsylvania
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quote:

ORIGINAL: tazzygirl

rofl

fantasy land yet again.

Ok- Texas is severely broke.

Even tho they have oil- people need oil-- but they do not need federal reserve notes.

I am more concerned with PA finances. and they aint too good. 4 bln shortfall.

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Post #: 17

RE: The Texas miracle goes bust - 1/9/2011 9:36:22 AM

tazzygirl

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Ya know, the shooter yesterday was also interested in cutting out the Fed Reserve.... a brother of yours?

_____________________________

Telling me to take Midol wont help your butthurt.
RIP, my demon-child 5-16-11
Duchess of Dissent 1
Dont judge me because I sin differently than you.
If you want it sugar coated, dont ask me what i think! It would violate TOS.

(in reply to pahunkboy)

Post #: 18

RE: The Texas miracle goes bust - 1/9/2011 9:37:46 AM

pahunkboy

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From: Central Pennsylvania
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quote:

ORIGINAL: tazzygirl

Ya know, the shooter yesterday was also interested in cutting out the Fed Reserve.... a brother of yours?

Sounds like Ron Paul.

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Post #: 19

RE: The Texas miracle goes bust - 1/9/2011 9:39:42 AM

TreasureKY

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quote:

ORIGINAL: tazzygirl

So what happened to the "Texas miracle" many people were talking about even a few months ago?

I don't know, Tazzy... I think I'd rather be "broke" in Texas than in any of the other states listed.

It seems to me that Krugman has failed to look at the whole picture. Just to give you an idea:

Attachment (1)

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Post #: 20

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