RSS Feeds Feeds: Articles | Issues
Articles About TAP Subscribe Donate
TAPPED  |  Beat the Press

Remember Me
Forgot your password?

The symbol identifies content for paid subscribers only.


 



The group blog of The American Prospect

MARK SANFORD'S STIMULUS OPPOSITION.

Gov. Mark Sanford of South Carolina has proclaimed that he intends to use the economic-stimulus money to pay down his state's debt instead of, you know, stimulating the economy.

South Carolina Gov. Mark Sanford plans to ask President Obama for permission to use part of his state’s stimulus money to pay down its debt, not on new spending, according to a letter he sent state legislators Tuesday.

A longtime opponent of the president’s nearly $800 billion stimulus package, the Republican governor told his state’s lawmakers that spending approximately $700 million in money coming from the federal government would only make the state’s financial situation worse in the long term.

“[W]hen one is in a hole, the first order of business is to stop digging,” Sanford wrote in the letter obtained by CNN Tuesday.

Steve Benen outlines why this is a bizarre and counterproductive approach. Basically, the debt is a long-term problem that can be solved over time, but in the short term the economy is in free fall, and using that money to balance the state's budget can only make South Carolina's economic circumstances worse.

The question is, can Sanford actually do this? Part of what makes the stimulus bill constitutional is the states' ability to refuse the money if they so choose. In a desperate attempt to limit the effects of Sanford's ill-advised presidential campaigning crusade in the midst of an economic crisis, the state Legislature in South Carolina has passed a veto-proof concurrent resolution saying the state wants to spend the federal money the way the federal government has suggested. Jack Balkin writes that the resolution, which was part of the process for receiving the funds outlined in the stimulus bill, may not be constitutional:

The federal stimulus bill says that a concurrent resolution is all that is necessary; this provision was inserted in the bill in order to do an end run around GOP governors like Sanford who might refuse federal funds either because of political grandstanding or because of their lack of a basic understanding of economics.

I think this provision may not be constitutional. Unless you can demonstrate that under South Carolina law, the South Carolina Legislature, acting alone, speaks for the State, it would seem to me that the governor's consent is necessary.

The problem with Sanford's grandstanding however, is that if in four years his state is still suffering while the rest of the country has begun to recover, it's going to be hard for him to campaign on his responsible stewardship of the state, even if the conservative base has lionized him as a hero. But I suppose if things are going better rather than worse, it won't really matter who the Republicans nominate. So basically all this amounts to is Sanford shooting his own state in the foot for no good reason.

-- A. Serwer



COMMENTS

It would seem that a veto-proof supermajority of a state legislature does speak for a state, since they suffice to make law despite the governor's opposition.

This sounds to me like grandstanding of the highest nature. Let's assume for a moment that my child calls and says, "Dad I have run up some large credit card debt. I need some money." I tell my child I will not give you money for your credit card debt but I will give you money for your mortgage.

Essentially the money I give frees up other money for what I do not wish to pay.

If Sanford can use the money for debt payment then other South Carolina money will be freed up for state spending. He will then be able to say I used this money for debt reduction.

At the same time other money could be used for jobs and infrastructure in South Carolina.

It is just a shell game to make him look good.

1) "The question is, can Sanford actually do this?"

It's the 10th Amendment - read up on it.

2) If you pay off debt where do you think that money goes? To people that invested in the state government. What do you think they will do with more capital?

3) Just because it has a title "stimulus" doesn't mean it will truly stimulate the economy. Just look to what Bush's TARP did and how banks like AIG still continue to fail.

"The problem with Sanford's grandstanding however, is that if in four years his state is still suffering while the rest of the country has begun to recover, it's going to be hard for him to campaign on his responsible stewardship of the state, even if the conservative base has lionized him as a hero."

But note that it's irrelevant how SC spends its [small] proportion of the stimulus package. Insofar as Sanford denies direct relief to his suffering constituents, it matters, but the purpose of stimulus is primary to jumpstart *nationawide* demand. If it works, SC's economy will benefit regardless of whether it pulls its weight or not--a classic"free rider" problem. If that happens, Sanford benefits both ways; he can pose as a conservative avatar while Obama and Co. pulls his chestnuts out of the fire.

Post a comment


Search TAPPED for:

Archives

About TAPPED

TAPPED, the Prospect's award-winning group blog, is a link-intensive collection of musings, ramblings, opinions and other assorted writing on the political developments of the day. See a list of our contributors.

| RSS | Twitter


Renew your print subscription or e-subscription.
Get an e-subscription for $14.95.
Give the gift of political insight. Send The American Prospect to a friend.
Change your email address or street address.
YES! I want to receive The American Prospect
— the essential source for progressive ideas.
Explore The American Prospect's award-winning investigative journalism and provocative essays in a free trial issue. Continue receiving The American Prospect at only $19.95 for a one-year subscription - a savings of 60% off the newsstand price!
First Name
Last Name
Address 1
Address 2
City
State
ZIP     
Email

Should you decide not to continue receiving the magazine after the initial free issue, simply write "cancel" on the invoice and you will not be billed.

© 2010 by The American Prospect, Inc.  |  Privacy Policy  |  Permissions and Reprints