Rhode Island Citizens: One Million Boiling Frogs
It’s been said that if you want to cook a frog, you don’t throw it in a pot of boiling water because it will immediately jump out. No, you place it in water of a comfortable temperature and gradually turn up the heat so that it won’t realize that it is being boiled … until it is too late.
The population of Rhode Island has hovered at about 1,000,000 since the 1950s. Whether by accident or design, the Democrat General Assembly has been using this same incremental technique to massively increase the tax burden on Rhode Islanders. The tax “water” is now bubbling, and it’s become awfully uncomfortable for us Rhode Islanders.
“A picture is worth a thousand words” – and as will be seen as we read on, the chart that appears below illustrates the point.
The chart is derived from an Excel spreadsheet posted online by a professor at URI, and it shows the Rhode Island State budget from 1950 to 2005 (The original posting is at http://www.uri.edu/artsci/com/Logan/archive/benchmarks/benchmarks.html ).
The good professor used Bureau of Labor Statistics (BLS) data to account for inflation. The eye-popping numbers are as follows:
1. 1950 State budget (inflation adjusted for 2005 dollars) was $308,596,107.
2. 2005 State budget (also 2005 dollars) equals $2,898,964,410.
3. The red line at the bottom of the chart shows what the State budget would look like today had simply kept pace with inflation.
What this data shows us is that in real terms the Democrat General Assembly has increased the State budget over NINE-FOLD since 1950! Recall that the overall population of the state hasn’t changed all that much over the same exact period.
Because the State budget must be balanced by law, the budget is the reciprocal of taxes, so in real terms the Democrat General Assembly has increased the tax burden over NINE-FOLD since 1950!
Recall too that in the 1950s we already had all of the essential government services — roads, bridges, schools, water, police and fire protection — so this nine-fold increase is not attributable to “essential government services.”
As for that red CPI line, note as well that the state budget pretty much trended alongside it until the mid-1960s. What changed? In 1966, the General Assembly enacted a statute which allowed public sector employees — state and municipal workers, as well as public school teachers — to unionize. During this same period, the so-called “Great Society” / “War on Poverty” programs had been initiated and were cranking up.
Thus were born both the welfare “industry” and “the unions” — the special interests which have not just grown, but have metastasized — which have come to totally dominate government in Rhode Island.
By 1971, the “union-welfare axis” was gaining traction and influence, and its hunger for taxpayer largess was feeling the early pangs of insatiability. Democrat Governor Frank Licht — whose name today graces a courthouse within which people “swear to tell the truth, the whole truth, and nothing but the truth” — had barely allowed the cover of the Bible upon which he took the oath of office to cool before he repudiated his campaign representations and imposed an income tax upon the dismayed citizens of Rhode Island.
Within a few years — promising property tax relief — the Democrat General Assembly brought us the Rhode Island State Lottery, circa 1974. That property tax relief promised by the Democrats is coming circa …
You’ll note that the period 1966 to 1974 is when the state budget began to spiral upward. In the crime shows on television, they talk about “motive and opportunity.” Well, the unions and the welfare industry provided the motive, and the income tax; the lottery and cumulative increases in the sales tax rate provided the opportunity — and boy, what opportunity! The Democrat General Assembly embarked on a multi-decade taxing and spending spree -– and has perpetrated a crime against the citizens of Rhode Island. Citizens who — in spite of these spiraling taxes — continue to suffer cratered roads, collapsing bridges, billions of dollars in unfunded pension deficits and an unconscionably poor public education system.
The irony is that the current “sturm und drang” concerning budget deficits really plays into the hands of the tax-and-spend-aholics of the union / welfare / Democrat axis — even though many of them don’t realize this themselves, accustomed as they are to viewing the world through the myopic vision of ever-increasing budgets to provide “critical investments” in “essential government services.” However, when one examines the expansion of state spending on a historical basis, the current deficits (and whatever “cuts” that might be made) are really quite minimal — mere tinkering around the edges.
Considering that the chart shows a near vertical trajectory of state spending over recent decades, the debate actually should be about a fundamental restructuring to bring us back to fiscal sanity — including benchmarking our neighbor to the north, New Hampshire. Its economy does better than Rhode Island’s; its public schools perform better; and its roads are much better — this though New Hampshire’s population isn’t much larger than ours, while it has several times the geographical area to pave and maintain. They somehow manage to do all that without either a sales or income tax! It can be done!
Additionally, consider that the Rhode Island State Lottery pumps over $300,000,000 per year into State coffers — so, had the Democrat General Assembly kept the growth of the State budget aligned with the CPI, the State Lottery alone would fund the entire State budget!
Therefore, the debate here in Rhode Island should be about eliminating the income tax, the sales tax — or both.
The current “tinkering around the margins” debate serves the special interests wishing to maintain the status quo, for the subject of meaningful fiscal reform isn’t even on the table. So even though whatever tinkering which ultimately will occur will almost certainly be spun as “painful” and “draconian” and a “real accomplishment involving sacrifice by all” — in fact, they’ll be nothing of the sort.
So when the Democrats (and their union and welfare industry puppet masters) bitch and moan that state spending can’t be cut, and taxes must be increased (a/k/a “revenue enhanced”), recall the chart and the huge spread between the CPI line and the total budget — and you’ll realize that the Democrats aren’t talking total budget but total bull**** (and we don’t mean bullfrog)!
So, are you boiling mad yet???
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March 27th, 2008 at 1:28 pm
Ignoring the problem makes it worse.
Ignoring Ron Paul will not make him wrong. It will make you homeless in the country your forefathers died for.
March 27th, 2008 at 1:46 pm
“The Democrat General Assembly embarked on a multi-decade taxing and spending spree -– and has perpetrated a crime against the citizens of Rhode Island. Citizens who — in spite of these spiraling taxes — continue to suffer cratered roads, collapsing bridges, billions of dollars in unfunded pension deficits and an unconscionably poor public education system.”
This in spite of NINE times the money available to them?
And they’re running a several hundred dollar current budget deficit on top of that?
And they’ve racked up billions of dollars of unfunded pension liabilities for the state workers and teachers?
The Founding Fathers must be up in heaven wondering why they even bothered; the country they founded is now populated by sheep willing to endure pervasively corrupt politicians and a tax burden that makes that of King George pale in comparison.
March 27th, 2008 at 1:58 pm
Idaho is beautiful in the Spring time –and in the other seasons too!
March 27th, 2008 at 4:43 pm
They should change the state’s motto from “the Ocean State” to “the K-Y State” since we’re all taking it up the wazoo thanks to the tax and spend Democrats!
March 27th, 2008 at 6:14 pm
It is pretty amazing that given how much our state budget has increased, and all the money which we’ve spent in the past few decades — with a stagnant population — that we don’t have very much to show for it.
PS If NASA ever needs a place to test out its Mars rovers, they might consider using one of our highways. Plenty of craters there. I got a flat tire yesterday after falling into a pothole. But heck, it’s just money, right?
March 27th, 2008 at 9:37 pm
Awesome post.
And as Overtaxed Citizen said, we have little to show for a nine-fold increase in spending.
March 28th, 2008 at 1:39 am
Those statistics, graphs, and arguments are very blatant and compelling. However, you will never get through to the other 900,000 people in RI who elect the horrible public officials we hate. The majority of RI voters don’t read this blog, even if they do, they aren’t even very smart and/ or many have their hands in the cookie jar. The entitlement mentality runs deep. In the Democratic primary, RI had one of the highest percentages of support for Hillary. So, there you have it. The only prayer for reform in RI is a massive public education program which no one has tried. But it wouldn’t be easy. And the odds of success would be remote. How do you sell public sector union members, welfare queens, and illegal aliens on the idea that entitlements are not good? Where is the vibrant local job market as an alternative? So, I doubt you’d get through. In other words, it is near hopeless. Sure it is *possible* to influence people, but it is a tough road when the customer is not eager. If you want more immediate change, you can only change yourself. Don’t try to move the other 900,000 idiots, try to move yourself.
March 28th, 2008 at 2:28 am
Citizen,
I’m reminded of the story of Sisyphus, a character in Greek mythology. He was a king punished in the Tartarus by being cursed to roll a huge boulder up a hill, only to watch it roll down again, and repeat this throughout eternity. Today, “Sisyphean” can be used as an adjective meaning that an activity is unending and/or repetitive. It could also be used to refer to tasks that are pointless and unrewarding.
If this were purely about us as individual citizens and our own self-interest, I suspect that many of us here would have fled Rhode Island a long time ago and just let Rhode Island die a quicker death — essentially, a mercy killing. However, many of us are also thinking about our family, friends, and neighbors who would be left on board when the boat sinks.
Many of us grew up here, have ancestral history here, as well as families still living here, and we don’t like the idea of essentially being forced out by thugs in the General Assembly or by those who pay them off.
That being said, never say never. For those of us with more options; it’s not a matter of “if”, but rather when they are exercised — if nothing changes.
March 28th, 2008 at 3:22 am
Will,
Don’t get me wrong, I very much admire the efforts of RI reformers. I was one.
Sure, there are some things I miss about RI. But, I don’t see myself moving back. Life on the outside is just too good, and things in RI appear to have gone from bad to worse.
The tale of Sisyphus is a good one, and relevant.
You can only lead horses to water, you cannot make them drink. Leading 900,000 horses is an immense challenge.
March 31st, 2008 at 11:56 pm
The tales about Sisyphus are all very moving, indeed. And the graph is, indeed appalling. But not for the reasons you think.
Listen, your red inflation line is wrong. The increase in CPI since 1950 is about a factor of nine. Check your math before waxing irate, please. You can find inflation indexes all over the internet. Use them.
Also, the numbers cited on the URI page are general revenue, not the total budget. If it’s credibility you seek, start with better homework. You might begin by trying to figure out if the cuts everyone mentions so blithely are actually possible, although perhaps it’s better to work out your arithmetic issues first.
April 1st, 2008 at 12:48 am
a concerned friend,
We’re not economists, but of course, we’re not trying convey something that is not correct. We’re always trying to do what is right. We’ll check into it. Thank you.
April 1st, 2008 at 2:00 am
One way to think about this: Take the percentage increase in the budget from year to year and plot it over time.
I believe you’ll find the following
1951-1960 average increase=7.9%
1961-1970 average increase=11.9%
1971-1980 average increase=10.7%
1981-1990 average increase=8%
1991-2000 average increase=4.5%
2001-2005 average increase=5.4%
Also, the average for the “good old days” (1951-66) is 8.4%. The “bad new days” of 1967-present is 8.3%.
I’m not arguing that these rates are not large or that they are not “too big”. I just think that the story above tying higher rates of growth to the post-1967 era and especially talking about recent “near vertical growth”, needs some further examination
April 1st, 2008 at 9:08 pm
I’ve been told by this post’s author that there will be a follow up to this post published early tomorrow, which should clarify any ambiguities. Thanks.
PS Apologies to Mr. Schmeling for the delay with your comment. With all those percentage signs, the algorithm thought you were trying to spam us!
April 2nd, 2008 at 1:04 am
When the dust clears, RI will be $10 BILLION in the hole.
That is my prediction.
Coming soon to a very small state near yours…
April 2nd, 2008 at 1:19 am
The follow-up article to this post can be found on The OSR at:
http://oceanstaterepublican.com/2008/04/02/addendum-to-rhode-island-citizens-one-million-boiling-frogs/
April 3rd, 2008 at 9:20 am
The original chart also included the state budget for URI. Readers may want to note that URI’s inflation adjusted state general revenu budget is smaller than it was in the 1970’s by at least 20%. Higher Education in RI is not part of the boiling frog syndrome, but rather a parboiled victim. see: http://www.uri.edu/artsci/com/Logan/archive/benchmarks/benchmarks.html
April 3rd, 2008 at 11:55 am
“Higher Education in RI is not part of the boiling frog syndrome, but rather a parboiled victim.”
You’re right!
The General Assembly has a knack for screwing up everything it touches. If it were not for MIT and the rest in and around Boston, there’d be no “Rt. 128″ technology cluster - and ALL of Massachusetts would resemble Springfield; New Bedford and Fall River.
So a world-class education system, K-12 and through the University system, should be Rhode Island’s #1 priority - both for future generations and for economic development.
Instead the General Assembly is more concerned with turning the state into a welfare magnet (for legal and illegal alike); giving their relatives “state jobs” and soliciting bribes (Operation Dollar Bill).
April 3rd, 2008 at 5:11 pm
“Higher Education in RI is not part of the boiling frog syndrome, but rather a parboiled victim.” You’re not only right but this is one of the best examples of a New England GOP born & bred program that built America
http://en.wikipedia.org/wiki/Morrill_Land-Grant_Colleges_Act
April 12th, 2008 at 3:20 am
ATTENTION: WILL THE LAST PERSON OUT OF RHODE ISLAND PLEASE TURN OFF THE LIGHTS. THANK YOU.
Sincerely,
The Public Sector Unions, The Poverty Pimps, and the RI Democratic Party