But let's not let a few real world details interrupt a right wing media slobberfest. Unlike the real Ronald Reagan who raised taxes eleven times as president, the wingnuts all believe that raising taxes is against the law of Reagan. (They also think climate change doesn't exist, of course.) By failing to get a grip on the problem and doing what needs to be done by raising taxes, one of the rating agencies has lowered NJ bond ratings. The rating agencies may have a lot of problems (ahem, financial crisis) but in the current real world, a ratings drop means more expensive debt.
All of the choices governors like Christie are facing today are unpleasant. There's no doubt about that. But Christie is the one who has made a name for himself within right wing circles by playing the tough guy who can kick unions and then wave a wand to fix all of the financial problems in New Jersey. It's not that easy and it's not that pain-free. The bluster may have been fun for him in the beginning, but now he's going to get a taste of what happens when you ignore a problem simply to appease your fan base. Reuters:
State governments continue to struggle with the effects of the 2007-2009 recession. Their revenue remains weak and altogether they face budget deficits of at least $100 billion for the next fiscal year, beginning for most in summer.Let's say Obama bails out Chris Christie's state. Does anyone believe for a second Christie would be so courteous as to say "thanks" to Obama? Me neither.
S&P's action turns up the heat on New Jersey Governor Chris Christie. S&P downgraded New Jersey to AA-minus from AA two weeks before the Republican governor proposes his own fix for the state's shaky finances.
