Obama's government model has failed in state tests

"President Obama has bet the economy on his program to grow the government and finance it with a more progressive tax system. It's hard to miss the irony that he's pitching this change in Washington even as the same governance model is imploding in three of the largest American states where it has been dominant for years -- California, New Jersey and New York.

A decade ago all three states were among America's most prosperous. California was the unrivaled technology center of the globe. New York was its financial capital. New Jersey is the third wealthiest state in the nation after Connecticut and Massachusetts. All three are now suffering from devastating budget deficits as the bills for years of tax-and-spend governance come due.

These states have been models of "progressive" policies that are supposed to create wealth: high tax rates on the rich, lots of government "investments," heavy unionization and a large government role in health care.

Here's a rundown on the results:"

http://online.wsj.com/article/SB124597150183556945.html

Obama finally gets two points on the board

It's the equivalent of what Wall Street used to call a poison pill. When an unwelcome suitor came calling, directors of the takeover target would quickly, and with great fanfare, stick into the corporation's bylaws a trigger that, upon receipt of a hostile bid, instantly made the company less valuable, and therefore less attractive.

After two weeks of stumbles, President Obama is showing some moxy.

His poison pill is a $500,000 annual salary cap for executives of any enterprise that seeks or accepts a bailout. Only the desperate will now apply. For many business executives in what used to be private enterprise, $500,000 is a good weekend, not a salary.

Yes, the salary cap is still another government intrusion in private commerce, but this one is justified. Who wants to see more tax revenue shoveled into the pockets of executives who have failed, but have suffered no consequences for failure?

Give Obama two points for stuffing the ungrateful big-shots in their own end zone.