Last night president Obama gave a formal address – arguably a prelude for the next four years of government spending, intervention and regulation. The Wall Street Journal commented that his vague allusions to industry regulations and bailouts were interpreted as increases in risk and uncertainty and thus decreases in the DJI.
After Obama’s address Louisiana’s governor Bobby Jindal delivered the Republican response. Along with Jindal’s recent denial of stimulus money earmarked for unemployment and wellfare increases, Jindal’s response has been scoffed by both left-wing media pundits and Paul Krugman.
I saw the interview when Jindal declined the portion of unemployment stimulus money for Louisiana and only briefly caught his response last night. My reaction, “way to go Bobby!” Jindal’s approach is complementary to a general impression I have gathered after moving back to New Orleans after four years in graduate school. Louisianians and New Orleanians in particular have one thing going for them. After years of ineffective, corrupt and at times even criminal government officials, we do nut suffer from Nirvana fallacies, we do not treat government as a black box. A local friend whose mother resides out of the state mentioned that she had said to him, “wow it looks like Obama will do great things for Louisiana with the stimulus bill.” His response: “that money won’t help the politicians will just drive fancier cars.” Last weekends Mardi Gras celebrations and every year I’ve had the privilege of attending echo this hostile and cynical vision of local and national politics.
New Orleanians also have a realist perspective when it comes to social welfare programs. Public housing, food stamps and public education have not eliminated poverty in this town – barely a dent – barely in the right direction. Does anyone seriously think that expanding the Magnolia housing projects is a good idea? There’s obviously still work to be done in New Orleans, and few if any of our residents are willing to endure any more idleness induced by subsidy.