The Right Side

Notes from a conservative student.

Giving into Federal Control

Posted by Cullin on April 18, 2009

Sometime between one and two this morning, while the Texas legislature was debating the budget for the next biennium, one representative brought up the notion that when they don’t have the stimulus money from the federal government, they will have to make “tough decisions” in the future.

These tough decisions would not have to be made in the future if the Texas legislature would just make the right decision now and not take the stimulus money from the federal government. The legislature has two big problems they will face with the acceptance of the Obama administration’s bribe and payback money: First, they are going to see themselves without the money in 2011. And, second, they will be giving up their sovereignty as a state legislature.

Our legislature does a funny thing that’s extremely inconsistent with normal human activity, they don’t spend based on future expected income. As pointed out by Milton Friedman, people spend money based on the income they expect to earn in the future. This is why you will see college students rack up debt to attend college, they plan to be able to make enough money from future wages to justify the current debt. And, this is why government spending sprees like the ones started by Bush and proliferated by Obama do not work to end a recession. When people get an unexpected check in the mail, above and beyond normal tax returns, from the government they save it or use it to pay off credit cards, which is really just a back door form of saving, because that money was already spent. This money doesn’t create new revenue for many people, and the taxes incurred (whether through inflation or straight forward) needed to pay for this spending will cause a crowding out effect that completely negates any new spending or investment, possibly even to the point of reducing spending and investment.

What our legislature does, instead of realizing that the money they are receiving from the federal government won’t be here in the future and tomorrow, they won’t be able to pay for new programs they start today. So, they go spending our money all willy-nilly without regard to what they are going to have to do in the future when their money runs out Either that or they are planning on more federal government money which is a dangerous precedent.

If the Texas legislature is going to depend on the federal government for money to fund its actions, it will become dependent on the federal government to sustain itself. And, to paraphrase Frederic Bastiat, when your financial sustainability is dependent on the government any freedom is purely illusory. In the same manner, when the state government depends on the federal money to sustain its programs, any autonomy of the state is purely illusory.

The Texas legislature needs to be making a point that they will be keeping their power as a state government to govern over the state and will not be accepting federal bribe money.

Support the sovereignty of states, call the House Committee on State Affairs, (512) 463-0814, and say yes on HCR 50 .

Also, check out the petition at Empower Texans.


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