Author: James A. Bacon
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It’s the Debt You Don’t See that Kills You
In theory, state and local governments in the United States are required to balance their budgets every year. In practice, many have been running massive deficits. Count on slippery politicians to find the loopholes. The most widely practiced trick is the under-funding of pension obligations. Another is dishing off debt to independent authorities. Another is…
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An Endless Game of Whack-a-Mole
There is no question that Virginia needs to clean up its laws regarding the giving of gifts, and the reporting of those gifts, to public officials. The sole encouraging aspect of the ongoing GiftGate saga is that there appears to be near-unanimous agreement, even among elected officials, upon the need for reform. Here at Bacon’s…
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Boomergeddon Watch: Uncle Sam’s Other Debt
by James A. Bacon The federal government is far more exposed to a rise in interest rates than commonly believed. As I frequently remind Bacon’s Rebellion readers, the national debt stands at $17 trillion, a sum that is increasing with no end in sight. But Uncle Sam’s total financial liabilities are far larger, says James…
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Henrico’s Imploding Case for the Meals Tax
by James A. Bacon Henrico County’s governing class justifies a proposed 4% meals tax, expected to raise $18 million a year, as necessary to ward off calamitous budget cuts. The revenues are needed, county officials say, because stagnant tax revenues aren’t sufficient to pay for rising pension liabilities and environmental mandates. There may have been…
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Boomergeddon Watch: The Interest Rate Trap
by James A. Bacon In previous blog posts, I’ve explored how the Federal Reserve Board’s near zero-interest rate policy has created drags on economic growth and job creation that have significantly offset its stimulative effects. First, by reducing yields on bank CDs, money market funds and bonds, super-low interest rates penalize savers. Low yields create…
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Why Do We Subsidize Inter-City Rail When Buses Can Do the Job?
Liberals love buses — at least when the buses are run by municipally owned enterprises with union workforces and operate at a loss that requires government subsidies. When buses provide profitable, inter-city service that competes with Amtrak, well, they’re not quite so enamored. But conservatives love profitable, inter-city buses, which represent a triumph of entrepreneurial…
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The Rise of the Aspirational City
by James A. Bacon Joel Kotkin and Wendell Cox have introduced the concept of the “aspirational” city — cities to which people move “to change their circumstances and improve their lives.” These are cities on the rise — restless, growing and entrepreneurial magnets of opportunity. I was pleasantly surprised to find Richmond ranking No. 7…
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Welfare Dependency Breeds More Welfare Dependency
A new study explores the phenomenon of inter-generational welfare and finds that children of parents on welfare increase their participation over the next five years by 6% and over the next 2 years by 12%. “We find strong evidence of a welfare culture, where welfare use in one generation causes welfare use in the next…
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Boomergeddon Watch: Chicago
Chicago is said to be the city that works. It has problems but its economy remains strong and diversified. It is no Detroit. Not yet… Unfortunately for that narrative, Moody’s last week made an unprecedented cut in the city’s bond rating from Aa3 to A3. “The outlook incorporates the likelihood of continued growth in unfunded…
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JLARC Higher-Ed Study Ducks Most Critical Questions
by James A. Bacon Key findings from the new Joint Legislative Audit and Review Commission report, “Key Trends in Higher Education Funding, Enrollment, and Student Costs“: Most spending at public four-year higher education institutions in Virginia is on activities other than direct instruction. Auxiliary enterprises such as housing, dining and inter-collegiate athletics have been the…
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If It Looks Like a Skunk and Smells Like a Skunk…
Have Henrico County officials violated the Code of Virginia by publishing a website supporting a 4% meals tax scheduled for a referendum this fall? That all depends on where you draw the line between “information” and “advocacy.” I raised the issue yesterday in a blog post (“County Paid Propaganda?”) that took note of the newly…
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What’s the Story with Innovation Center?
by James A. Bacon At long last, Northern Virginia leaders have a source of regional tax dollars that they can divvy up according to local priorities, not dictated by Richmond. When they deliberated last week on how to divvy up the first dollop of money — $209 million, including a $94 million bond package —…
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County Paid Propaganda? Citizens Want Answers!
by James A. Bacon Henrico County has launched a website to tout a 4% meals tax proposal that voters will accept or reject in a referendum this fall. With slick graphics and professionally produced video, Henrico County Meals Tax Facts, created by the West Cary Group ad agency, cost $20,250, reports the Times-Dispatch today. The…
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The Eminence Grise Behind the Bi-County Parkway
by James A. Bacon Everybody who’s followed the politics of real estate development in Virginia has heard the name of John T. “Til” Hazel, the high-profile attorney and developer who did so much to shape the human settlement patterns of Northern Virginia. Hazel was gregarious, combative and willing to campaign like a politician to counter…
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How to Help Renters, First-time Home Buyers and the Budget Deficit
by James A. Bacon Between loan guarantees, tax breaks and outright subsidies, the federal government exerts a $450 billion-a-year influence over American real estate markets. Smart Growth America proposes eliminating about $40 billion in federal largesse, reinvesting $7 billion a year in targeted programs to help renters, first-time home buyers and infrastructure investment, and… get…