Federal Government Should Pay for 100% of Sandy Clean-Up

The difference between state governments and the federal government is that state governments have balanced budget requirements and the federal government doesn’t.

There is no reason at all why state governments should have to spend a dime on Hurricane Sandy clean-up – that is, divert tax dollars away from education or Medicaid or anything else – at a time when investors are willing to pay us for the privilege of holding 20-year Treasuries. Yes, right now 20-year Treasury yields are negative.

It is currently more fiscally conservative to pay for the Hurricane clean-up with new borrowing than it is to pay for it out of current taxes.

Or here is an even better suggestion from Cate Long – the Federal Reserve should purchase infrastructure bonds with freshly printed money to fund the clean-up.

Comments

  1. John says:

    You have to be kidding.

    I’m all for helping those in need and who need help (Staten Island for example).

    But to dedicate on nickel to bailing out millionaires and billionaires so they can keep their houses at the Jersey Shore? NO FUCKING WAY. They’re on their own.

    You choose to live on a beach, you bear the consequences. It’s called being responsible for your actions.

    • Jon Geeting says:

      You’re a monster. But anyway, I’m only talking about feds picking up the tab for whatever state and local governments were going to spend.

      • John says:

        State and local governments are going to pay for infrastructure repair and rebuilding beaches and dunes. So you want me to rebuild Ocean Cit NJ? Bullshit.

        Jon, I have no desire to pay for millionaires and billionaires so your party can curry political favor. Please stop that shit.

        Again, help those who need help. If you’re a millionaire or billionaire, congratulations and you can feel good that you don’t need help.

        If that’s a monster, so be it. And again, I sure hope you’re spending time helping your fellow NYers in their time of trouble. Blogging for someone else to pay for it doesn’t count as help.

        • Jon Geeting says:

          I want the level of government that can actually afford to pay for the repairs to pay for them. Or in the case of the Fed, create the money out of thin air.

  2. John says:

    By the way, I hope you’ve dedicated time and money to helping those in your city that have been devastated by the hurricane. They need all our help desperately, and since you live right there you should be there doing all you can.

    Blogging about a federal bailout is not help.

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