A Tale of Two Times

For years, Illinois, like so many states, pretended that it had not fallen off a budgetary cliff. It was spending too much and taking in too little revenue, but every year it would kick its problems into the next. Unable to pay its bills, it finally accepted reality last week and raised taxes on incomes and businesses — a first step toward getting its house in order. (NYT, 1/16/11)

The dismal fiscal situation in many states is forcing governors, despite their party affiliation, toward a consensus on what medicine is needed going forward. The prescription? Slash spending. Avoid tax increases. Tear up regulations that might drive away business and jobs. Shrink government, even if that means tackling the thorny issues of public employees and their pensions. (NYT, 1/17/11)

Kudos to (some) Democrats for adopting Republican remedies to fix the problems of their states. They appear to “get it” even if the New York Times – contrary to its own reporting – does not.