For all of its howling and absurd denouncements, the
Virginia Republican Party, like many Virginians, are economically linked at the
hip, for better or for worse, to the federal government. The close relationship
between the federal government and Virginia was further revealed when Moody’s Investors Service improved Virginia’s
credit outlook to “stable” and affirmed the commonwealth’s triple-A bond rating
one day after the credit rating company improved the U.S. government’s rating
from “negative” to “stable”.
In December
2011 Moody’s downgraded Virginia’s credit outlook to “negative” due in
great part to Virginia’s reliance on federal spending. That is, Virginia Democratic
and Republican Party reliance on federal spending, not just Democratic Party
reliance.
According to Moody’s, federal budget deficits have decreased
faster than originally forecast and the
U.S. economy has “demonstrated a degree of resilience to major reductions
in the growth of government spending.”
Virginia has also taken its own steps to rein in spending by
reforming
the Virginia Retirement System and reducing “unfunded liabilities” in local
and state employee pension plans. What is continuing to hurt Virginia’s economy
the most, however, is the ill-conceived and even more contemptible decision to
allow the federal ‘sequestration’ to indiscriminately buzz-saw through the
federal budget.
Sen.
Mark Warner noted during a hearing last week regarding the impacts of the
sequestration that the indiscriminate cuts in federal spending are negatively
effecting small businesses “from Northern Virginia to Norfolk.” That is, the
sequestration’s harmful effects to Virginia’s economy are not isolated to
Northern Virginia. On a more abstract level, the nature of our globally
integrated economic network means that negative effects to one of Virginia’s
economic sectors could potentially have a negative effect on a seemingly
peripheral part of Virginia’s economy.
What this means is that Virginians should be concerned with what goes on
in other parts of Virginia’s economy if only for purely selfish reasons.
Sooner or later, Virginia’s Republican Party will have to
begin discussing how the state is going to create jobs, not just cut spending
in more and more insignificant corners of Virginia’s economy. While this would
mean actually using their imaginative intelligence, I believe some within
Virginia’s Republican Party have this capability. While the Virginia Democratic
Party is not blameless for any of the economic woes the state has experienced
over the last few years, the absurd
ideas and policy decisions of the Republican Party clearly take the cake in
terms of adding little to Virginia’s economic recovery.
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