By Pat Buchanan
Even lifelong Democratic pol Steny Hoyer majority leader of the U.S. House is balking at Barack Obamas latest bailout proposal.
I think there is spending fatigue said Steny. Its tough in both houses to get votes.
Hoyer was referring to Obamas weekend letter to Capitol Hill calling for a $50 billion bailout of state and city governments to spare our elected politicians the pain of balancing their budgets with their own tax revenues.
Obama calls it an emergency measure to prevent massive layoffs of teachers police and firefighters. Yet none of the 20 million state county or municipal workers can lose their job unless an elected legislature and a chief executive agree that they should go.
Obama is calling for a taxpayer rescue of the political class to which he belongs to spare it the painful duty tens of thousands of business executives have had to perform. Private employees -- 25 million of whom are out of work underemployed or have given up looking for jobs -- may be expendable but government workers are not.
As America is running a second consecutive deficit of $1.4 trillion however the U.S. government has no tax revenue to send to the cities and states. We would have to borrow the $50 billion from China Japan and the Persian Gulf nations.
Obama is thus asking Congress to deepen Americas fiscal crisis and put the next generation on the hook for another $50 billion so todays mayors and governors can get an exemption from their political duty.
Where is the justice here?
Government workers enjoy far greater job security than private-sector workers. At the state and local level their average pay and benefits about $40 an hour far exceed the $27 per hour in the private sector. The federal worker has it even better receiving $30000 a year more in pay and benefits than the average worker in the private sector.
Obamas proposal is thus about taking care of his own and the Democratic Partys political base.
Consider. The American Federation of State County and Municipal Employees the American Federation of Teachers the Transport Workers Union of America and other government unions in the AFL-CIO are all powerhouses of the Democratic Party.
Obama is proposing a $50 billion payoff for his own voters.
Democrats are the Party of Government. The more government programs and agencies there are the more government bureaucrats and beneficiaries there are. As government grows -- it now consumes close to 40 percent of the entire economy -- the larger and more solid the base of the party becomes.
In Washington D.C. the largest employers far and away are the U.S. and D.C. governments. They dominate the city which is why city elections are so one-sided. The district has the only three electoral votes never to have gone for a GOP presidential nominee.
Richard Nixon in 1972 and Ronald Reagan in 1984 in their 49-state landslides did not carry 20 percent of the districts popular vote. John McCain got 6.5 percent.
As Democrats are the party of government Washington D.C. is the capital of the Democratic Party as well as the nation. When the rest of America suffers a depression and recession Washington knows prosperity. An economic crisis for the country means job opportunities here.
But there is a more critical reason Congress should reject Obamas Save-Government-First! policy.
The fiscal crises gripping Europe and America which could portend a crisis of Western democracy was caused by the unbridled growth of government. And it cannot be cured without a rollback of government programs and a downsizing of government workforces on both sides of the Atlantic.
As Greece is staring at unpayable debt because of governments conferring of jobs benefits salaries pensions and health care the tax base could not sustain California and New York are in the same boat and headed for the same reef.
Once the richest and most populous of states both now face a steady exodus of business and taxpayers. But of the people coming in to enjoy the cornucopia of benefits these states provide many lack the skills education or earning power of those departing.
And why should states like Virginia that said no to many benefits have to bail out the spenders in Sacramento and Albany who could not say no?
For the U.S. government to bail these states out again as Obama did with his $800 billion stimulus would only be to postpone the inevitable day of reckoning to deepen the federal fiscal crisis and to raise the odds further that America herself will one day have to default.
In the recession of 1981 Ronald Reagan with his across-the board tax cuts of 25 percent bet the ranch on the private sector -- and won his gamble.
Obama with his $800 billion stimulus bet it all on the public sector. It appears not to have worked. Now Obama wants to double-down.
Congress should give him no more chips.
Pat Buchanan is a founding editor of The American Conservative magazine and the author of many books including State of Emergency: The Third World Invasion and Conquest of America .