Skip to main content

It’s the Spending, Stupid


In Charles Dickens’ David Copperfield, Mr. Micawber finds himself headed to a debtor’s prison. Before it was abolished Dickens’ own father found himself in similar straights.

 

Micawber, chronically unable to take his own advice, tells Copperfield, “Annual income twenty pounds, annual expenditure nineteen, nineteen and six, result happiness.  Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.” The difference between economic misery and happiness may turn on a penny. Debt – or rather inattention to debt – accumulates, and cumulative debt is always painful.

 

The state Office of Legislative Research (OLR) reported in 2024, “You [perhaps one of our tax-thirsty legislators] asked for a 50-state comparison of state debt as a percent of state gross domestic product (GDP) and how Connecticut’s debt burden based on these measures has changed in the past 10 years.

 

“Connecticut had the highest NTSD [Net Tax Supported Debt] as a percent of own-source revenue at 103.8%, greater than the median of 24.5% for all states. Two other New England states ranked in the top 10 based on this metric: Massachusetts (90.2%) and Rhode Island (55%).”

 

Debtor's prisons in England have long been abolished, but habit and inclination live on. Modern economists might put it this way: When the gross national or state product exceeds expenditures, the result is happiness; when expenditures exceed either the gross national or state product, the result is misery. To put it in plain common-sense terms, when your income dips below your expenses, you will find yourself in a world of hurt.

 

That rule apparently does not apply to federal or state governments. The federal government may borrow money or print dollars to cover its debt. Both “solutions” cause inflation. The classic definition of inflation is “too many dollars chasing too few goods.” Inflation is a hidden consumption tax that reduces the purchasing power of the dollar. Because the devaluated dollar is worth less, the purchaser will need more of them to buy inflated goods, a substantial part of the increase in the price of goods being the result of dollar devaluation.

 

Connecticut’s long term debt means, among other things, that our continuing budget debt is a Micawber debt. Connecticut has for decades spent more than the state has paid out to discharge its continuing debt. If there were a debtor's prison awaiting spendthrift legislators, more than half of state legislators would be cooling their heels in prison and exclaiming, along with Micawber, “Annual income twenty pounds, annual expenditure nineteen, nineteen and six, result happiness.  Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.”

 

According to the 2024 OLR report, “Connecticut’s rank among other states,” the second poorest of the 50 states, “remained relatively unchanged from 2012 to 2022. Across all states, the median NTSD as a percent of state GDP decreased from 2.47% in 2012 to 2.18% in 2017 and 2.00% in 2022. Over the same period, Connecticut’s increased from 8.09% in 2012 to 9.11% in 2017 and then decreased to 9.00% in 2022.”

 

These depressing figures were not prominently presented during Governor Ned Lamont’s 2026 State of the State message to Connecticut’s General Assembly. The governor, naturally, could not be expected to rain on his own parade.

 

In his State of the State address opening the new legislative success, Lamont quoted Thomas Paine, author of Common Sense to this effect: “These are the times that try men’s souls.” And once again, Lamont intimated, the nation has fallen into the iron, merciless grip of a petty tyrant, President Donald Trump, who has become a stock figure in Democrat Party campaign literature.

 

Lamont, thought by many to be a right of center moderate on tax and spending issues, touched lightly on what has been called deficit spending: “It is bad for any budget – your family budget, the budget for your small business, our state budget – to grow faster than your income can support. We have been down that deficit road before, but our strong economic growth allows us to do more without compromising our honestly balanced budget.”

 

Lamont did not quote Paine on freedom, poverty and taxes: “To say that any people are not fit for freedom, is to make poverty their choice, and to say they had rather be loaded with taxes than not.”

 

Lamont did not notice, even in passing, the connection between state tyranny and the suppression of the free market. Paine noticed: “Heaven knows how to put a proper price upon its goods. It would be strange indeed if so celestial an article as Freedom should not be highly rated. Britain, with an army to enforce her tyranny, has declared that she has a right (not only to tax) but ‘to bind us in all cases whatsoever, and if being bound in that manner, is not slavery, then is there not such a thing as slavery upon earth. Even the expression is impious, for so unlimited a power can belong only to God.”

 

Paine -- even today, as the nation approaches the 250th celebration of its declaration of liberty and freedom – is still too hot to handle by statists who fail to understand the connection between the liberties of a free market, in which consumers make consumption and political decisions, and an impious state power that regards people, loaded with taxes, as slaves of a command economy.  

Comments

Popular posts from this blog

The Blumenthal Burisma Connection

Steve Hilton , a Fox News commentator who over the weekend had connected some Burisma corruption dots, had this to say about Connecticut U.S. Senator Dick Blumenthal’s association with the tangled knot of corruption in Ukraine: “We cross-referenced the Senate co-sponsors of Ed Markey's Ukraine gas bill with the list of Democrats whom Burisma lobbyist, David Leiter, routinely gave money to and found another one -- one of the most sanctimonious of them all, actually -- Sen. Richard Blumenthal."

Maureen Dowd vs Chris Murphy

  Maureen Dowd, a longtime New York Times columnist who never has been over friendly to Donald Trump, was interviewed recently by Bill Maher, and she laid down the law, so to speak, to the Democrat Party.   In the course of a discussion with Maher on the recently released movie Snow White, “New York Times columnist Maureen Dowd declared Democrats are ‘in a coma’ while giving a blunt diagnosis of the party she argued had become off-putting to voters,” Fox News reported.   The Democrats, Dowd said, stopped "paying attention" to the long term political realignment of the working class. "Also,” she added, “they just stopped being any fun. I mean, they made everyone feel that everything they said and did, and every word was wrong, and people don't want to live like that, feeling that everything they do is wrong."   "Do you think we're over that era?" Maher asked.   “No," Dowd answered. "I think Democrats are just in a coma. Th...

Lamont Surprised at Suit Brought Against PURA

Marissa P. Gillett, the state's chief utility regulator, watches Gov. Ned Lamont field questions about a new approach to regulation in April 2023. Credit: MARK PAZNIOKAS / CTMIRROR.ORG Concerning a suit brought by Eversource and Avangrid, Connecticut’s energy delivery agents, against Connecticut’s Public Utility Regulatory Agency (PURA), Governor Ned Lamont surprised most of the state’s political watchers by affecting surprise.   “Look,” Lamont told a Hartford Courant reporter shortly after the suit was filed, “I think it is incredibly unhelpful,” Lamont said. “Everyone is getting mad at the umpires.   Eversource is not getting everything they want and they are bringing suit. It was a surprise to me. Nobody notified me. I think we have to do a better job of working together.”   Lamont’s claim is far less plausible than the legal claim made by Eversource and Avangrid. The contretemps between Connecticut’s energy distributors and Marissa Gillett , Gov. Ned Lamont’s ...