Comment and analysis on all things Charlotte

Why Meck Might Be Doomed

Over 16 percent of all personal income in America in the first quarter of the year was in the form of a government check, an all-time high. Meanwhile, state unemployment trust funds are running dry, like the one in Raleigh which has borrowed $470m. from the feds and probably will require a payroll tax hike in the near future. Then there are the lavish benefits Mecklenburg County supplied to a relatively large segment of the local population as tax revenues surged over the past decade.

The common theme is the end of free money. Inflation and tax hikes are poised to zap the nation’s great wealth creating machine even as unemployment chugs along at a 10 percent rate. Taxes on job creation obviously will not help and the erosion of earning power via inflation will reduce the standard of living across the board. Inflation spikes will mean a real cut in the value of government benefits, no doubt driving calls to “adjust” them upward.

The inflection point for jurisdictions like Mecklenburg and North Carolina will come when — if ever — they choose to put the interests of the most productive members of society on par with, let alone ahead of, those of the least productive. As I see no understanding of this matter among our almost uniformly dullard leaders state or local, I do not foresee this change ever happening.

6 Responses to “Why Meck Might Be Doomed”

  • Jun
    05
    2009

    And people wonder why Ayn Rand’s Atlas Shrugged is selling so well lately. The scenario Rand spelled out in intricate detail 50 years ago is coming true right before our very eyes: Rampant socialism, taking from the successful to support the unsuccessful who claim a “right” to virtually everything, and the mindset that a government elite should be able to decide what is “fair” and what is not.

    The only thing that hasn’t happened, yet, is successful people going “on strike” and denying the masses any of their hard-earned wealth. Although, there does seem to be a movement starting now in which many wealthy people are fleeing tax-heavy jurisdictions, such as New York, California, and New England, for friendlier states like Texas and Florida. Charlotte, and indeed the entire rest of the state, would do well to emulate these “tax haven” states and avoid the self-destructive trap that the progressive states have fallen into. North Carolina is definitely on the high end of the Laffer Curve and things are only going to get worse unless drastic corrective action, in the form of lowered taxes and fiscal responsibility, is taken.

  • Jun
    05
    2009

    I was watching Frost/Nixon and it occured to me that you could say the Bush years were the Nixon/Ford Compassionate Conservative years of the 70’s now followed by the Obama Administration’s blindly implementing Carter’s Keynesian formulas for Stagflation.

  • Jun
    05
    2009

    Exactly Sky, but I would love to know the percentage that defense spending makes up of the federal budget now compared to 76-77-78….

  • Jun
    05
    2009

    here’s a link with Pie Charts.

    http://www.usgovernmentspending.com/year2005_0.html#usgs302

  • Jun
    06
    2009

    time to move, buy some land, and go off the grid.

  • Jun
    06
    2009

    JAT, do you mean *defense* spending or *military* spending?

    Half our military budget has nothing to do with defense of the United States.

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