Updating The View from Michigan

In one of the first posts on that I wrote on this blog, I wrote:

Here in Michigan, we've had quite a bit of experience with liberal Democrats, and can see the fruits of their labor... They remind me a lot of Obama, and if Obama becomes President, the rest of the nation is going to quickly look like Michigan- unemployed, dropping in GDP, low population growth, unhappy, fat, with poor schools, crumbling roads and bridges, and higher taxes.

Sadly, this is now coming true, and the harder Democrats work and the more legislation they pass following their ideas, the worse the situation gets nationally. If we ever do recover economically, it will be in spite of Democrats, not because of them. The real reason though why I write today is not to beat the drum against Democrats, but instead to draw attention to Michigan in particular. In that first post I also wrote:

Last year, the state government spending grew by 4%, while our economy fell apart. Tax money fell. So Michigan jammed through the largest tax increase in 20 years. Result? Economy fell harder, resulting in lower tax money. Response? More taxes! Result? This time the government had 'extra' money to 'balance' the (4% larger) budget. Result? More government spending!

Last year the government had 'extra money' that they got from their tax increases, so they increased spending. This year, the state is looking at a $2.7 billion shortfall. That 'extra money' could have come in handy now, more so than whatever the government blew it on last year.

So what do you suppose the 'solution' that Democrats are going to propose will be now that they don't have enough money to pay for all their special-interest projects? Cut spending? I doubt it- I personally contacted my state senator with suggestions on things to cut from the budget and in reply she laughed at me and told me to get a life. When I contacted the governor and suggested budget items to cut, her reply was that it was tough to cut even $1000 out of the budget- if that is her mentality, do you really think we will have 2.7 billion in cuts?

No, the story is going to follow the same story is usually does when Democrats are in charge- tax increases, borrowing of money, expansions of fees, lessening of services, and maybe some cuts to roads, police, and schools. You read it here first.

The Detroit News has a great editorial that goes along this line of thinking- I suggest you check it out. It is called Remember 2007? Budget talks follow same course that led to tax hike, no reforms two years ago.