Downey: Socialist Win in France Should Be 'Warning Signal'

Editor's Note: The following comes from State Rep. Keith Downey (R-Edina). The views expressed are solely his and do not reflect those of Patch.

As the Monday morning quarterbacking begins on our 2012 legislative session, we should look at the big picture. The press of course goes for political headlines, looking at the "stories" in isolation. But the real measure of the 2012 legislature is whether its short term spending and debt will help strategically position Minnesota for success.

Situation

Economic uncertainty and unsustainable government fiscal imbalances are challenges being faced by states and nations across the world, and unfortunately we are all connected to it.

The recent election in France that saw current President Nicolas Sarkosy go down in defeat to the Socialist François Hollande should serve as a warning signal. Europe does not appear willing to deal with its problems. And a spillover effect here in the United States now seems more likely than not.

President-elect Hollande campaigned and won with a platform that would increase the size and budget of French government, while raising taxes dramatically. Markets spooked, and already we are seeing news reports about the expected flight of capital from France to more business and tax-friendly countries. This is an example of the road we cannot afford to take in Minnesota.

Strategy

So what can we do here in Minnesota? We should buffer ourselves from the next economic (mega) bubble of government debt—and position our state for a bright future!

We should control state spending, reform programs, streamline operations, improve our business climate, and reduce our state debt and unfunded liabilities. And we should move away from dependence on federal programs that make us just like every other state and federal funding streams that will increasingly be at risk as fiscal realities hit. And we cannot afford to ignore the potential spillover effects of an economic malaise in Europe.

If we do that, and trust in the talent, energy and ethic of Minnesotans and our Minnesota businesses, we can secure a bright future for the next generation even in the face of serious challenges.

2012 Session

In spite of isolated successes with our Reform 2.0 agenda (much was vetoed), the overall 2012 legislative outcome of more bonding, gambling, stadiums, spending, taxes, and debt service was a step in the wrong direction, which I voted against. And with all this new spending and debt, we barely started to fund the restoration of our capitol building or improve our business taxes, which I supported.

Short term stimulus like this may score the desired political points with some constituencies for the 2012 election (and would likely garner the admiration of France’s president), but it does nothing to advance long term economic growth in Minnesota nor the fiscal restraint we need in the face of national and worldwide economic challenges.

After a good start in 2011 by turning a huge state deficit into a surplus and starting on reforms, this was not the advance we needed in 2012.

Governments around the world will ultimately feel the painful impact of more spending and higher taxes in the face of dire fiscal situations. Minnesota can indeed have a bright future if we resist the temptation and don’t join them.

Yes, there is a better way—let’s trust Minnesotans, not bigger government, to build our future!

I look forward to seeing you on the campaign trail. I am excited to be running for State Senate after Sen. Geoff Michel announced his retirement. As always, please be in touch with any question or concern you may have.

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