Fresh Ideas, Timeless Principles

Printed in the Mankato Free Press:

In Rep. Kathy Brynaert’s recent My View about investing in infrastructure, she recognized Minnesota is struggling with unemployment.

She pointed out that of the $1.2 billion deficit for the current budget, about 70 percent is due to lower tax revenue. However, the bonding bill she advocates has little to do with infrastructure and will only put Minnesota deeper in debt.

Minnesota’s state expenditures increased from approximately $17.6 billion in 2000 to an expected $30.2 billion in 2010. Other states have burdened their citizens with such an immense load of debt that potential taxpayers are leaving, and these states are unable to pay their growing debt.

Governmental indebtedness is social and economic poison. Increasing state spending and debt will only shrink our state’s economy.

Taxpayers are leaving Minnesota. The U.S. Department of Commerce’s Census Bureau reports that between 2002 and 2009, Minnesota lost 54,113 residents to other states.

A report by the Freedom Foundation of Minnesota analyzing census and IRS data shows above average income earners are moving to states with lower taxes. This trend suggests Minnesota does not offer a comparatively vibrant economic climate. Minnesota needs sustainable jobs. Rep. Brynaert claims there is agreement that state spending grows economies, but she is wrong. Economists do not agree that the discredited, Depression-era theory of state spending she bases her legislative work on spurs economic growth.  Sustainable jobs and family wealth come from ordinary Minnesotans working and investing their own money in businesses.

No politician can do this for them. As an optimistic financial realist, I support keeping money and power in the capable hands of the people.