Sarah Palin’s Experience Challenged

September 9, 2008 · Posted in Politics 

I have been working on some research into Sarah Palin’s experience and have learned quite a lot about the state of Alaska in the process.

Here is a quote from Palin’s acceptance speech:

Our state budget is under control.
We have a surplus.

The state does have a surplus – a $39 billion surplus. However, this money sits in a Permanent Fund which was set up in the 70′s when Alaska started reaping in mounds of cash during the oil boom. It is an investment fund whose principal is untouchable.

To say that the state’s budget is under control is a misleading statement. Residents of the state of Alaska do not pay income tax or sales tax. Over 80% of Alaska’s revenues come from oil and gas. With the skyrocketing price of gas, Alaska is currently enjoying a large windfall of cash. However, the state also receives money in the form of federal subsidies. These subsidies, which the rest of us pay for, are to the tune of $8 billion a year. Even with the cash haul from oil revenues, Alaska is completely dependent upon these federal subsidies. Meanwhile, qualifying residents of Alaska receive a check every year from the Permanent Fund dividends. In 2007 the check was in the amount of $1,654.

Now I can understand why Sarah Palin has an 83% approval rating in her state. Who wouldn’t love getting that yearly bonus? I’m not sure that I can agree with the assertion that Palin is the most qualified in matters of the economy. Alaska’s economy is completely unique to the rest of the United States. Simply being governor of Alaska for two years does not mean that you have an understanding of the federal budget.

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