The political econmoy of state government debt : an analysis of constitutional limitations (1961-1990)

Over the past decade, scholarly interest concerning the use of limitations to constrain government spending and taxing has noticeably increased. The call for constitutional restrictions can be credited, in part, to Washington's apparent inability to legislate any significant reductions in government expenditures or in the size of the national debt. At the present time, the federal government is far from instituting any constitutional limitations on spending or borrowing; however, the states have incorporated many controls on revenues and expenditures, the oldest being strictures on full faith and credit borrowing. This dissertations examines the efficacy of these restrictions on borrowing across the states (excluding Alaska) for the period dating from 1961 to 1990 and also studies the limitations on taxing and spending synonymous with the Tax Revolt.

We include socio-economic information in our calculations to control for factors other than the institutional variables that affect state borrowing levels. Our results show that certain constitutional restrictions (in particular, the referendum requirement and the dollar debt limit) are more effective than others. The apparent ineffectiveness of other limitations, such as the flexible debt limit, seem related to the bindingness of the limitations in at least half of the cases. Other variables, such as crime rates, number of schoolage children, and state personal income do affect the levels of full faith and credit debt, but not as strongly as the limitations. While some degree of circumvention can be detected (the amount of full faith and credit debt does inversely affect the levels of nonguaranteed debt), it is so small when compared to the effectiveness of the constitutional restrictions that it is almost negligible. The examination of the tax revolt era limitations yielded quite similar conclusions, with the additional fact that constitutional restrictions appear more binding than statutory ones. Our research demonstrates that constitutional limitations on borrowing can be applied effectively to constrain excessive borrowing, but caution must be used. The efficacy of these restrictions decrease dramatically as the number of loopholes increase.

The Art of Madness

The nineteenth century was not an entirely kind time for the female artist. Coming of age as the 1800’s bridged into its latter half, literary artists Elizabeth Stuart Phelps Ward, Charlotte Perkins Gilman, and Kate Chopin were all well aware of their uncharitable culture. Equipped with firm feminist bents and creative visions, each of three women produced a seminal work – The Story of Avis, “The Yellow Wallpaper,” and The Awakening, respectively – taking that atmosphere to task. In these stories, each of the three women produces a female protagonist who struggles for having been born simultaneously an artist and a woman. The writers pit their women’s desires against the restrictive latitude of their time and show how such conditions drive women to madness, as a result of which they are forced to either escape into the blind mind of insanity or deal daily with their pain and inescapable societal condemnation. In an age where “hysteria” was a frequent hit in the vernacular, Phelps, Gilman and Chopin use art and literature as mediums to show that, indeed, there is a method behind the madness.