[Marxism] Re: Nader and Buchanan--thoughts on conservatism

Julio Huato juliohuato at hotmail.com
Tue Jun 8 14:45:38 MDT 2004


Michael Perelman wrote:

>I was appalled by Camejo's campaign, which stressed the need for fiscal 
>austerity much too much.

Did Camejo advocate for low spending or spending cuts affecting the working 
poor?  Or do you mean that he called for public revenues > or = public 
expenditures?  If he advocated for the latter, what's wrong with that?  Why 
would that stance at the state (not federal) level be a bad thing for a 
leftist governor?

Wouldn't the need to roll over the debt be riskier and constrain state 
policies even further?  At the federal level, you can use deficit financing 
against the cycle because your debt is denominated in the currency you print 
and the inflationary tax is progressive (they say that in the short run only 
and if).  But at the state level, what can you accomplish this way?

I mean, if you know that the nature of your fiscal imbalance is temporary, 
then you would try and borrow while if you knew it is permanent, you'd try 
and "adjust" (i.e., rise taxes, cut spending, or some combination thereof).  
But the problem is you never know, and as big as California's economy is 
borrowing has risks (because the banks will always index the debt on 
inflation).  Plus the banks will have a political lever to try to bend your 
policies.  No?

Julio

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