Economics 101

Debt is a liability. The more of it one has, the harder it is for him to survive/get ahead. Nevertheless, many of us volunteerily put ourselves in debt to purchase a house. It is reasoned that a house appreciates over time, is needed, and is less expensive than renting. Most other purchases do not meet those criteria.

For instance, a reasonable man would not borrow money to buy tickets to the game, pay off an existing debt, or to give a gift.

Yet, that is exactly what our state is contemplating doing.

The state is considering using future revenue from its toll roads , primarily the New Jersey Turnpike and the Garden State Parkway , to borrow a large sum of money to pay debt, reduce property taxes and fund unmet needs.

Can you believe it? First, Governor Corzine tried to sell the roads. The public was not receptive to that. Now he wants to give away the revenue to smooth things over right now. But this “live in the moment” mentality disregards the debt the state will pay later.

It was just a year ago that Corzine indebted the state for 30 years to fill potholes last year. Remember that in 2035 when you pay your property taxes.

This is what McGreevey did with the tobacco money. Recall dear reader, several years ago all the clamoring about how harmful cigarettes were for us. Lawsuits abound and New Jersey was rewarded handsomely. You don’t hear about that money these days do you? That is because what was once a revenue is now a liability. McGreevey sold that future revenue for cash. That cash balanced budgets a few years ago, hired some young men to roam the governor’s mansion, and to provide property tax reform.  Now we pay interest on the tobacco money to the bond holders who provided the cash.

Doesn’t that sound exactly like what Corzine is proposing?

Selling off the tolls for the next 20 years to provide property tax relief or pay the bills in 2008 doesn’t sound like what a reasonable man would do.

Is Governor Corzine a reasonable man?

It is time to put a stop to this right now.

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