Big government plans ...
If you talk to local government officials these days, they probably won’t be complaining about their financial condition. What a switch that is from this time last year.
Defiance City Hall, for example, was projecting double-digit income tax revenue reductions in anticipation of burgeoning unemployment brought on by the government reaction to the coronavirus. The unemployment part came to fruition in the form of an Ohio jobless rate of 16.4% in April 2020. But cash provided to local officials by the federal government allowed Defiance and others to improve their bottom line last year.
Having weathered what was believed at the time to be a gathering storm of some immensity, local communities — as documented previously in this newspaper — are set to receive even more money they’re not requesting. Defiance, for example, will get $3.2 million or so from the oddly named $1.9 trillion American Rescue Plan passed in Washington, D.C.
To that questionable spending is being added another $2 trillion that the Biden administration wants for family-related programs. One sensibly has to wonder where this is going to end and how, given that Democrats apparently have no interest in placing any checks on this spending.
A corollary thought: Claims about a socialist-oriented impulse to regulate, redistribute and fiscally bail out irresponsible state and metropolitan governments are hard to dismiss as mere conspiracy theory when these very things seem to be unfolding right before our eyes in an economy that has bounced back pretty well.