Gov. Steve Beshear expressed excitement and an interesting economic theory Thursday afternoon in response to hearing President-elect Barack Obama’s plan for a bailout of the states.
“Without fast and comprehensive action,” Beshear said, “our nation and state will fall into a deeper recession.”
Beshear didn’t provide any information to back up his suggestion that “fast and comprehensive action” — which simply means spending some borrowed tax money — will prevent a deeper recession.
The worst thing about a bailout of the states is that inefficiently allocated assets don’t get a chance to be put to better use. The second worst thing is that the money will be gone all too soon.
Beshear, meanwhile, is still talking:
“We are ready, as a state, to invest this stimulus funding. To that end, I will continue to work aggressively with Kentucky’s congressional delegation, state and local officials and the incoming administration to ensure that we are prepared to maximize the impact of funding to create jobs and ensure that we are moving our state forward with responsible investments in infrastructure.”
This is not going to end well.