The Republican Party of Iowa is celebrating its “rising stars” tonight at an event featuring Mississippi Governor Haley Barbour. Judging by what we’ve heard lately from Iowa GOP leaders, they’re gonna party like it’s 1929.

Case in point: Iowa Senate Minority leader Paul McKinley. The possible gubernatorial candidate’s weekly memos continue to whine about spending and borrowing by Democrats (see also here). Republicans would rather slash government programs and provide “targeted” one-year tax credits.

The lessons of Herbert Hoover’s presidency are still lost on these people. I apologize for repeating myself, but excessive government spending cuts can turn an economic recession into a depression. Since state governments cannot run budget deficits, it makes sense for the federal government to help the states “backfill” their budgets. That was the express purpose of the state transfer funds in the stimulus package.

In addition, it is prudent to spend federal funds on projects with long-term benefits. Energy Secretary Steven Chu was in Des Moines on June 23 to highlight the first installment of what will be $41 million in stimulus funds for renewable energy and energy-efficiency projects in Iowa. Energy efficiency programs in particular will have huge collateral benefits, saving consumers money while helping the environment.

No matter how many times Republicans repeat their misleading talking points about the I-JOBS state bonding initiative Democrats passed this year, it is prudent to borrow money for worthwhile projects when interest rates are low. I don’t hear McKinley or other Republican leaders telling businesses not to borrow money to make capital improvements.

Share any thoughts about Republican ideas, rhetoric, or career lobbyist Haley Barbour in this thread.