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Moral Hazard Times Infinity

   There are so many things wrong with the stimulus, it is hard to know where to begin.  But to me, nothing in this ill-begotten bill screams moral hazard more then the money federal lawmakers are setting aside for states and cities.  At present, it appears that some of this aid was stripped out of the senate version passed today by an overwhelming (cough cough) majority, but just a few hours later Pelosi announced that she wants to put it back in.  One can only hope that her insistence leads to more wrangling and perhaps an end to this foolish enterprise all together.
   Consider: states all across this great union are suffering, but which of them are suffering the most?  Are you hearing about Florida's 40-billion dollar deficit? Are you hearing that Texas is considering taxing itunes downloads and movie tickets?  No, of course not, because those states actually have some idea of how to plan ahead, and they are mixed, in their legislative bodies, between the two parties.  It's the dark blue states like New York, California, and Maryland that need this money.  They need this money because their state legislators are spend-crazy, and their governor's are spineless.  They need this money to "create and preserve jobs".  Baloney. With the money they get from the Feds, these states will simply plug the holes in their budgets and hope that business can continue as usual.  They will use the money to preserve failing, bloated bureacracies, and they will continue to fund pet projects that otherwise will need to be scaled back or scrapped. 
   These Democratic governors and state legislators got into this fiscal mess by not looking ahead, and so therefore the solution is to allow them to continue not looking ahead.  If you think that statement is bit illogical, well, perhaps you are too smart to ever belong to the United States Congress.
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One Party Can Never Last, Can It?

   The old adage has rung true time and time again: absolute power corrupts absolutely.  We see it everywhere: in the heavily Republican Congress of 2003-2004, in Illinois state politics, in Albany, New York.  But as always, there are exceptions to the rule.  Case in point: the state of Maryland.
 
   I am 22 years old, and throughout my life there has only been one party making laws, spending money, and setting social policy: Democrats.  Sure there was governor Erlich in 2002, but that was mainly the by-product of a terrible Democratic candidate that year.  As soon as the next gubernatorial race rolled around, it was straight back to Democrats.  
 
   Now, I don't know when this will end, or if it ever will.  There are murmerings now of rebellion in the ranks today, as I write this.  People hate the tax increase of 2007.  They also want more spending, however.  People hate that crime continues to worsen in places like Montgomery and Prince George's counties.  People despise the myriad fees and the expensive toll to get across the Bay Bridge.  They hate the regulations on business but, in the same breath, ask for more environmental safeguards.  In short, the people of Maryland are hard to please, but even harder to figure out.
 
   With so many problems, what will voters do about it?  My best guess now is that they will continue to elect huge Democratic majorities in the state house and that they will most likely re-elect Governor O'Malley.  It is, to borrow a Hannity word, "stunning".  But part of the problem here is that Republicans remain small, timid, and unwilling or unable to talk about things that Marylanders care about.  I have already dispensed some advice in a previous posting, but here goes some more: be different, but not necessarily Republican.
 
   More on this tomorrow.
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How the Maryland GOP can win in 2010

   A week ago I was perusing the left-of-center Washington Post when I came across a startling statistic in the Metro section.  According to an article on how the terms of Maryland governor Martin O'Malley and Virginia governor Tim Kaine have been affected by the sharp economic downturn, O'Malley still enjoyed a 52% approval rating, versus 37% who disapproved of the job he has been doing.  Heading into the 2010 election cycle, the article suggested, O'Malley still had a fairly good shot at re-election in deep blue Maryland.
   At first I was livid.  How could a majority, albeit marginal majority, of Marylanders still approve of a governor who raised taxes to the tune of $1.8 billion dollars while the economy weakened and people saw a gallon of gas hit $4?  How could they approve of O'Malley when he had done nothing of serious consequence through two-plus years as governor?
   But then I stepped back: only 52% of Marylanders approved of O'Malley in the People's Republic of Maryland? That is cause for celebration.  Usually it would be in the high 70s if the economy was decent and incomes were rising.  But neither of conditions have been met, so Republicans have a chance, an opening, at picking off the governor's office in Maryland provided that they choose the right person and run on the right platform.  The following are some musings I have about the issues and arguments they can make to at least put up a fight against O'Folly and the Democratic Party of Maryland in 2010.

1.
  Start referring to him as O'Folly.  It's funny and it really speaks to how foolish and utterly incompetent his administration has been in these trying economic times.
 
2.  Ignore point number one, and instead hit hard on the tax issue.  Remind people that while their incomes were faltering and the housing market was crashing, O'Malley and his democratic chums in the State House raised taxes and were giddy doing so. 
 
3.  Court the anti-slot crowd.  This doesn't mean run on the position that slots are evil and that they must be stopped at all costs, because those days are gone thanks to the newly passed slots referendum.  Instead remind folks, many of whom are Democrats, that it was this governor who went back on his prior word and backed slots because he had no money in the state coffers (even after raising taxes) and he desperately wants to fund big money programs he promised in 2006.  Remind voters that gambling and a higher sales tax hits lower-income residents harder then the Potomac and Bethesda-area crews, and that these moves aren't very uh, progressive.
 
4.  Use county issues to further pit Democrats against Democrats.  For instance, in my county,  Montgomery, there has long been public anger over the building of the "ICC", a long toll road supposed to connect Montgomery and Prince George's counties and alleviate the traffic build-up on the Capital Area Beltway.  But it is nothing more then another way for state government to make money and seize propery, all the while destroying home values and damaging environmental and historical sites.  On top of that, the ICC is projected to go over-budget, further draining the state's precious resources and taking away vital dollars from schools.  Make the case against this terrible idea, and appeal to greenies and fiscal conservatives alike.  Hit hard on other local issues, issues that may be hated in their areas but which are pushed onwards by leaders in Annapolis.
 
5.  Get serious about minority issues.  Talk about prison reform, and the fact that Prince George's county has one of the most corrupt police forces in the United States.  Talk about schools, and school systems, and why an "accounting error" led to some $20 million being kept from Montgomery County schools.  Talk about how racist acts in Charles County are unacceptable and dispicable, and how challenges to the hispanic community will be met.
 
   These are just a few topics and suggestions, but they highlight the issues where Republicans, an endangered animal in Maryland, can enlist the support of Democrats and perhaps push towards a surprising victory a la Governor Erlich in 2002.  Onward elephants, off you must go!
 
 
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