Way back in 2009, Goldman Sachs alumnus and then-New Jersey Governor Jon Corzine advised New Jerseyans to ‘go to North Dakota‘ if they wanted a low unemployment rate.
Almost eight years later, 2017 N.J. Democrat candidate Phil Murphy wants to found a state-run bank for the Garden State.
“I believe it will have far reaching positive impacts on countless business and communities,” explained Murphy, another Goldman Sachs alum.
He insists it would help New Jersey combat the pension crisis.
There’s a lot not to like about this idea, Save Jerseyans. For starters, you’re shifting the risk of questionable private sector investments onto the taxpayers. Politician make enough regrettable, expensive decisions without a bank to compound the problem. We need one more den of thieves to police like we need another hole in our collective heads.
I repeat: New Jersey taxpayers would be on the hook for any losses (and resulting bailouts).
Of course, that’s only the tip of the iceberg:
(1) Murphy’s plan, as with all liberal proposals, refuses to address root causes; and
(2) He’s picked one thing he likes from economically-robust North Dakota while ignoring everything else.
Under a hypothetical Governor Murphy, there’s no indication that Trenton would reduce its bloated state workforce, engage additional pension reforms, and stand up to the corrupting influences of public sector unions. Any head-of-household or small business owner knows that it doesn’t matter how much you bring in if your costs continue to outstrip revenue projections.
Without fundamental reform, Phil Murphy can open as many banks as he’d like and there still won’t be nearly enough money in the kitty to tackle our state’s mounting unfunded pension liability (which has eclipsed $40 billion) among other expenses. Hell, we can’t even pay of roads!
What’s more, without controlling costs, the only hope is new revenue. Long-term revenue growth is stunted by the kind of taxation advocated by Murphy and his party (h/t Art Laffer). So when he was shopping for ideas and decided he liked North Dakota’s bank, why didn’t he also latch onto its comparatively libertarian tax climate led by a 2.9% top income tax rate?
Oil and smart economic policies allowed one of America’s most rural states to double its economy in 11 years.
The bank
Phil Murphy is holding himself out as a problem-solver… much like Corzine before him.
What New Jersey really needs? Someone who’s willing to learn AND see reality, not what they want to see due to ideological biases, when examining what other superiorly-prosperous states are doing right.
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