Despite Stock Market Turmoil, Economy Rolls Along
A “summertime view” of the economy by Utah economist Jeff Thregold shows solid growth continuing: “The strong 5.3% real (inflation adjusted) annual growth rate in 2006’s first quarter is expected to give way to a 3.0% growth pace over the balance of the year. This compares to 3.5% real growth in 2005 and 4.2% growth in 2004. The economy’s ability to offset the headwinds of rising short-term interest rates and high energy prices remains impressive.”
In his weekly Tea Leaves economic update, Thredgold says new Federal Reserve Chairman Ben Bernanke has stumbled a few times and has confused Wall Street about his commitment to fight inflation. “Every Fed Chair is forced early in their reign to give what I call ‘the Speech.’ It is a no-holds-barred personal testament that the Fed under their control will keep inflation at low levels, even as such policy can upset politicians, consumers, and market players in the U.S. and around the world. While such resolve can clearly disappoint financial markets in the short-run (as now, for instance), such policy is the essential groundwork for sustained, non-inflationary growth and higher stock and bond prices in coming years.”
National Politics
Can the Democrats Win the House?
In his NationalJournal.com column, Chuck Todd looks at the chances of Democrats taking over Congress and finds Democrats a little dispirited. He said the Calif.-50 race showed “there's no extra excitement in the Democratic base, as there was no increase in the Democratic vote in Calif.-50. (The same was true of the entire state.)” Also, immigration seems to be an issue powerful enough to rally the Republican base. See also NationalJournal.com’s House race rankings.
Blog Watch
At the Senate Site blog, Pres. John Valentine says: "If you think [this year's controversy surrounding Medicaid dental] was turbulent, wait until next year. And the year after. And the year after that. This recent controversy is just the first wave in a storm that is coming. The Federal Government will continue to slash Medicaid funding. The State of Utah will continue to have a balanced budget. The Governor and the Legislature will be forced to prioritize and make some very difficult choices. We’ll survive the storm, like we always do, but we need to be smart, compassionate and disciplined to balance competing priorities and meet state needs" (see also here, here, and here)... KCPW's Midday Metro notes: "[Today] at 10 a.m., Midday Metro will be split between Congressman Chris Cannon and his challenger John Jacob. It will be one-on-one time with the candidates, and a preview of the KCPW debate scheduled for Monday at 8:30" (see also here)... Out of Context says: "Utah may have a few influential Republican bloggers, such as state Rep. Steve Urquhart and the Senate Site, but the blogosphere at this point is a Democratic haven. Yes, even in Utah" (see also here)... Part of the Plan says HHS Sec. and former Utah governor Mike Leavitt "has fallen prey to the seductive temptations of living large on the taxpayer's largesse"... Joe's theories on Everything says of Senate candidate Pete Ashdown: "The more I listen to him speak, the more I enjoy his ideas, and appreciate his candor. If elected he will bring a sense of purpose and collaboration to a group that is in dire need of such. When was the last time any politician asked for your opinion on anything?" (see also here)... A Liberal Mormon says Gov. Huntsman "has very pleasantly surprised me ... He is one of the few Republicans whom I feel I can trust, and whom I would be willing to work with"... Pete Suffield says Rep. Jim Matheson is a hero... Congressional candidate Christian Burridge lists the "top ten reasons Utah County Democrats and Independents will not be 'assimilated'" by the Republican Borg Collective... Daniel W. Drezner questions the need for Sen. Orrin Hatch's proposed flag protection amendment: "Seriously, is this really a problem in this country? Utah Senator Bob Bennett points out the obvious: 'The only time there's any significant amount of flag burning is when the flag amendment is introduced and people go out and burn flags in opposition to the amendment'" (see also here).
-- Compiled by Golden Webb
Tax Burden Comparison
The Utah Taxpayers Association has posted an analysis of how Utah's tax burden compares with other states. To read a PDF file of the report, click here. The report says Utah 's state & local taxes and fees as a percent of total personal income (TPI) are 10.8% higher than the 50 state average, ranking 4th highest among the fifty states. When fees are excluded, Utah ranks 19th highest. College tuition is included as a fee in the study and when it is excluded, Utah’s fee ranking drops from 5th highest to 14th highest.
Global Warming Rally
The Utah Chapter of the Sierra Club will be holding a "Global Warming Action Rally" on Saturday, June 17 at the Gallivan Center in downtown Salt Lake City. For more info, click here.
Local Watch
SL Co. June Budget
The Salt Lake County website has posted PDF files of Mayor Peter Corroon's June budget and June budget adjustments.
Washington Watch
Hatch Courts Fence-Sitters
Sen. Orrin Hatch and other "proponents of a constitutional ban on flag burning threw two baseball heroes, one Miss America, dozens of veterans and the Senate leadership at Sen. Mitch McConnell and other [flag amendment] fence-sitters ... in what is expected to be a very close [Senate] vote later this month" (Lexington Herald-Leader and press release); article looks at Hatch's proposed DREAM Act, which would grant conditional resident status to undocumented immigrant students for six years to allow them to work and receive financial aid for college (Contra Costa Times).
Matheson Against Congressional Pay Raise
The Council for Citizens Against Government Waste criticizes the U.S. House of Representatives for voting to raise its own pay by $3,300. Says CCAGW President Tom Schatz: "Serving in Congress is the only job in the country where you can set your own salary without regard to performance or fiscal constraints. It is shameful that [Utah] Rep. [Jim] Matheson was the only member to speak on the pay hike" (see press release); Matheson says the fight against wasteful federal spending would get a boost if legislation giving Pres. Bush line-item veto authority becomes law (press release); Matheson participates in a House subcommittee hearing on violent and explicit video games, "outlining his bipartisan legislation to enforce the age-appropriate ratings assigned to the popular pastime" (press release).
PAC Targets Cannon
Team America PAC launches a radio campaign in Salt Lake City "to make Republican Primary voters aware of Representative Chris Cannon's support for illegal alien amnesties and other benefits for illegal aliens even though he represents his record as having been tough on illegal immigration" (see press release); Americans for Tax Reform honors Cannon with its annual “Hero of the Taxpayer” award (see press release); the House passes Cannon-sponsored legislation "which would allow Juab County, Utah to benefit from conjunctive use of surface and groundwater sources" (press release).
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