Government waste weighs heavily on the backs of the taxpayers.
This week the SC Legislature is considering Governor Sanford’s vetoes to its proposed budget. Total spending from all sources is set to exceed $20 Billion dollars in fiscal year 2008-09.
By the Budget and Control Board’s own numbers, state spending has grown 42 percent in recent years. This is more than twice the growth in median family income (just 17 percent during that same period).
So how does the state stay afloat if spending is growing 2 and 1/2 times faster than the citizen’s ability to pay for it?
Simple: South Carolina’s government is structured like a fraudulent pyramid scheme.
Here is the basic idea:
1. Governments waste money, fail to deliver effective services
2. Citizens pay taxes to finance government waste
3. Quality of life reduced, due to taxation and lack of services
4. Government expands to compensate
5. Higher taxes further reduce quality of life
6. Repeat steps 1 through 5
Not only does government growth inevitably lead to a larger entitlement system, it also receives diminishing returns from family and business tax policies as the private sector shrinks.
But big-spending lawmakers in South Carolina have a few tricks up their sleeves. While the design is fundamentally unsustainable, they are able to keep up the farce with the classic tricks of the financial con man.
See if these look familiar:
Ironically, step two is fueled in part by failed government, which keeps standards of living so low that the new residents’ (often retirees) existing wealth carries a higher purchasing power than they are accustomed to.
Add to all this huge federal government subsidies, as well as the ability to hide debt and unfunded liabilities through government-only accounting practices, and lawmakers can continue to grow government with reckless abandon.
The people of South Carolina deserve better. Sadly, the track record of incumbent politicians (lying to constituents, lining the pockets of donors, ignoring the facts, and simply disregarding the will of the people) suggests that change will be hard fought. Take a minute now to contact your legislator and let them know that real reform is your priority.