The Politicians Lied! How States and Bureaucrats are Getting Billions of Dollars They Don’t Need – Creating 8 Horrible Unintended Consequences

Craig HueyEconomics, Election, Government, Politics3 Comments

The politicians lied.

The media went along with it.

And the result will be 8 horrible unintended consequences that will hurt your family, your kids, and your grandkids.

Here is what happened.

1. The Reality.

State governments across the U.S. last year saw tax revenue increases, despite the pandemic.

Private companies, especially small businesses, entrepreneurial start-ups and retailers were devastated by the lockdowns. Many lost everything. Many went out of business forever.

But big companies grew bigger…and so did the tax revenue to state governments.

Similarly, lower income and middle income people lost their incomes, savings, and many people their livelihood.

But the wealthy got wealthier.

Government policy favored the big companies and the wealthy. And tax revenues went up. This group pays over 80% of all taxes. The states found a historic spike in tax income.

2. The Big Lie.

The lie was the state governments were incurring huge deficits because of the pandemic and only the federal government could financially rescue them from the collapse of the state tax base.

3. The Truth.

States experienced huge surpluses:

  • California surplus: $75 billion
  • New Jersey Surplus: $6.8 billion
  • Arizona surplus: $1 billion
  • Texas surplus: $725 million

4. What then happened is repugnant and wrong.

The politicians kept the lockdowns in place. They kept the rhetoric of doom in place, kept schools shut down…all with the cry that they needed more federal money to stop an economic disaster. Without money, pending doom would destroy everyone.

5. Biden and Congress to the rescue.

With Biden in office and Congress run by the Democrats, never before had there been such a great opportunity to fund government programs and increase the power and size of government.

And they took advantage of it.

Based upon a lie of suffering states in final crisis, they passed the $350 billion state aid in the “American Rescue” plan:

It wasn’t needed.

It didn’t require fiscal responsibility.

It gave a blank check to grow government into more socialism and government programs.

The American Rescue plan was a political trick.

6And the result? States got billions they don’t need.

  • California received more than $27 billion (with a $72 billion surplus)
  • New Jersey received more than $6 billion (with a $6.8 billion surplus)
  • Arizona received more than $4 billion (with a $1.6 billion surplus)
  • Texas received more than $15 billion (with a $725 million surplus)

This money should have never been given to the states. There wasn’t a need.

And the politicians even wrote into the law a rule that the states cannot use the federal money to give back to the people.

7. And there is more. This money to states is just part of what they and other government agencies will get.

 For example:

  • $130 billion for local government is coming
  • $123 billion for schools is coming
  • $31 billion for city/state-government-run transit agencies

And of course, more federal tax money is hidden in the trillion plus infrastructure bill and other bills before Congress.

8. Who is hurt by this waste and fraud? The pain is not easily seen, but it’s real.

Government programs will be funded with new bureaucracy and new recipients becoming dependent on government – becoming addicted to this new money. These new programs will stay after the federal money runs out. And that will require more taxes to keep funding the programs after the federal state bailout money runs out.

Higher federal taxes are ahead to pay for all of this.

Deficit spending is required, resulting in more inflation.

You’ll see corruption by bureaucrats for waste, inefficiencies, and for mishandling all the money.

Some of the tax money will be going to “community organizations” that are political groups registering, organizing and mobilizing voters for the 2022 election for the Democrat socialists.

Corrupt?

Yes.

Wrong?

Yes.

Damaging?

Yes.

It’s time to stop the tax and spending madness.

It’s time to vote for fiscally responsible candidates who will fight for smaller government, less taxes…and stop the overspending and deficit spending.

What do you think? Let me know at craig@electionforum.org.

3 Comments on “The Politicians Lied! How States and Bureaucrats are Getting Billions of Dollars They Don’t Need – Creating 8 Horrible Unintended Consequences”

  1. The Democrats’ role in this is quite obvious. But, way too often, Republicans are in on it, too. One example is Arizona, as mentioned above. The governor of Arizona is supposedly a Republican, but he recently vetoed twenty-two Republican bills, including election integrity bills. Another example is Oregon, where RINOs helped the Democrats pass severely anti-Second Amendment bills. Voters need to examine candidates closely – they absolutely cannot be trusted.

  2. The Rino Republicans failed to back our President which allowed a corrupt election to stand. I am sick of all the deep state politicians on both sides. Now we have the most liberal, socialist bend administration that has one goal, which is to destroy everything that America stands for.

    Unless the Republicans grow some big ones, we are screwed as a nation.

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