The State of the State

Posted January 20th, 2014 in Weekly Article by isaac

When Governor Daugaard gave the annual State of the State address last week, he highlighted several benchmarks which demonstrate the advantage of having economic policies based on reality. What do I mean by reality? I’ll tell you in a bit, followed by some ways we are in danger of ignoring reality. But first, some highlights.

South Dakota’s unemployment rate is the second lowest in the nation at 3.6%, and we have added enough jobs in the past years to exceed our recession losses by 2.5%. We’ve been named the #1 State for business by CNBC, and we have the highest personal income growth in the nation. One study of photos posted on the internet even found that South Dakotans smiled more than any other state!

South Dakotans recognize economic reality. Our state has a balanced budget, meaning we don’t put any of our regular expenses on the credit card, and we haven’t increased the tax rates on the economy in order to do so. If we would have increased the sales tax by “1 penny” as the last election’s ballot measure proposed, that would have been a significant drain on economic growth, and a state tax increase of 25%.

But there is another constraint that reality places on South Dakota, and rightly so:we can’t print money. Or to put it another way, diluting money–your money. Even the word used to describe the result (“inflation”) is deceptive, because it implies that the products and services are becoming more valuable, when in fact it’s your paycheck and your savings becoming less valuable.

The primary beneficiaries of inflation are the Federal Reserve Banks. The Fed is a non-governmental organization of banks authorized by congress with no audit level oversight by anyone, including congress. That’s why inflation is referred to as the “hidden tax” which actually hurts the poor and lower income the most, and keeps them from achieving economic security. That’s why I co-sponsored a resolution this year calling for an audit of the Fed.

Consider this: If you had the choice of taxing the nation’s income at 15% per year, or the nation’s net worth at 3% per year, which would you choose? The Federal Reserve chose the latter, and siphons off far more value every year than income taxes.

As a result of this scheme, foisted upon us by a corrupt congress right before Christmas in 1913, we the people lost control of our currency. (Not so coincidentally, it was earlier that year the 17th amendment was ratified, which deprived the states of their representation in the U.S. Senate).

While South Dakota’s economy is strong, we are nevertheless tied to the fate of our Federal Government, the Federal Reserve, and the continuously devalued Dollar (or Federal Reserve Note.) This is the reality we cannot afford to ignore. We argue amongst ourselves about “increasing costs,” “increased funding” and hear statements such as “if you don’t increase funding/taxes, you don’t care about the children!”

Friends, we must not fall prey to this temptation to be divided. South Dakotans are united against corruption, we favor local control, and self-governance. South Dakota is living proof that decisions made locally produce better results. We cannot be comforted by our strong economy as long as the skyrocketing debt, inflation, and regulation continue in Washington, because it will take our economy down with it.

What can we do when so much of our economic destiny is out of our control? We can take it back! We can unite and unleash the Constitution’s greatest power using Article V. It is a process given to us by our founding fathers who knew that federal government could someday become tyrannical. Article V allows the states to come together and propose amendments which would return local control to the states and the people where it belongs.

For more information about this project, visit www.conventionofstates.com and contact me if you are interested in getting involved. On a positive note, both Representative Noem and Senator Thune have supported a balanced budget amendment. Senator Johnson has opposed it. We need more Senators sent to D.C. who will vote to limit federal power. But in the meantime, let’s unify on the principle of Self-Governance, and use Article V to return local control to South Dakota.

Fill out the form below if you are interested in helping with the convention of states project!

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