A Novel Idea: Pay-as-You-Go Government

New Jersey Governor Chris Christie is still acting as if he means what he says about controlling the costs of government. By canceling the long-planned construction of a second commuter tunnel under the Hudson River today, Christie has reaffirmed the principle that government should not try to do more than it can afford. A close look at the finances of the scheme showed that cost overruns were likely to send the bill on the project to as much as $14 billion, almost $6 billion more than the original estimate. That means that New Jersey — which is to say, New Jersey’s taxpayers — would have to pay at least $8 billion of that amount, the remainder being contributed by New York’s Port Authority and the federal government. But in the absence of givebacks by the state’s civil-service unions, whose contracts and pensions threaten to send the state into the red even if the tunnel were not to be paid for, Christie said no, to the utter consternation of the unions, the rest of the political class, and New York Times‘s columnist Paul Krugman.

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A Novel Idea: Pay-as-You-Go Government

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Podcast: Conservatism in shackles while O.J. goes free?

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