Leave Internet Shoppers Alone

During the boom years of the early 2000s when the Federal Reserve was doping up the economy with cheap money and consumers were spending more than they were taking in, state government coffers were swelling with income tax revenues. Budgets increased, more and more entitlements were enacted, and little consideration was given to the possibility of tax revenues decreasing in the future. Today, after the bubble has burst and consumers' purse strings tightened, state governments (especially California) have been left with billions of dollars worth of obligations that cannot be met.

For many Americans, these developments are welcomed. One of the most effective ways to reduce the size of government is to simply starve it. States, unlike the Federal government, lack the ability to inflate their way out of deficits and therefore run the risk of having their credit rating cut should debt increase to unmanageable levels. Nevertheless, many politicians and their media lackeys have chosen to duck the question of fiscal responsibility, and instead chosen to attack consumers and successful Internet retailers. With sales tax rates in some states north of 9%, consumers have more reasons than ever to look to out of state retailers for price breaks on major purchases. This is, of course, not an unexpected occurrence. As tax rates go up, the more incentive people have to avoid paying them.

In what is also not an unexpected occurrence, pro big government media attack dogs Michael Hiltzik at the LA Times, and Randall Stross at the NY Times, have focused their rage not on the politicians whose irresponsible budgetary policies and lack of foresight got their states into debt, but at those who dare to shop at Amazon.com. Stross even when so far as to accuse Amazon.com founder Jeff Bezos of not doing his part "to avert layoffs of schoolteachers and firefighters and, yes, professors at state universities". Nothing could be further from the truth. The solution to every state's budget crisis is to simply spend less. It is a painful and unwelcome reality for every politician whose electability depends on the volume of freebies they can promise their constituents. Therefore, as the financial crisis deepens, we can continue to expect to see politicians and the rich media elite pointing their fingers at cash-strapped consumers trying to avoid oppressive sales tax bills. Do not be fooled by their tear jerking tales of teachers and firefighters being kicked out onto the street. These people know the solution to all their problems is less government, they just cannot bring themselves to admit it.