Comments on: Dude, the recession’s in your backyard http://michaelgracie.com/2008/05/08/dude-the-recessions-in-your-backyard/ Clever Tagline Unavailable At Publication Time Thu, 07 Aug 2008 20:13:00 +0000 http://wordpress.org/?v=2.6 By: Michael Gracie http://michaelgracie.com/2008/05/08/dude-the-recessions-in-your-backyard/#comment-9184 Michael Gracie Fri, 09 May 2008 02:11:46 +0000 http://michaelgracie.com/2008/05/08/dude-the-recessions-in-your-backyard/#comment-9184 Agreed on all accounts. Unfortunately, most elected (and appointed) officials never bought the "living with their means" upgrade to their jargon generators. Agreed on all accounts. Unfortunately, most elected (and appointed) officials never bought the “living with their means” upgrade to their jargon generators.

]]> By: JorgXMcKie http://michaelgracie.com/2008/05/08/dude-the-recessions-in-your-backyard/#comment-9182 JorgXMcKie Fri, 09 May 2008 01:13:57 +0000 http://michaelgracie.com/2008/05/08/dude-the-recessions-in-your-backyard/#comment-9182 Oddly enough, governments that make promises (i.e. wage, benefit, and pensions) that aren't both conservative and actuarially sound usually end up having to lay off employees. Slowing economic activity merely exacerbates the natural tendency of elected officials to overspend by bringing the bad news earlier. Perhaps governments might consider living within their means, saving for a rainy day, and making realistic (rather than rosy scenario) budget revenue projections. Just a thought. And no one, *NO ONE*, has the right to a job paid for by my tax dollars. Oddly enough, governments that make promises (i.e. wage, benefit, and pensions) that aren’t both conservative and actuarially sound usually end up having to lay off employees. Slowing economic activity merely exacerbates the natural tendency of elected officials to overspend by bringing the bad news earlier. Perhaps governments might consider living within their means, saving for a rainy day, and making realistic (rather than rosy scenario) budget revenue projections. Just a thought. And no one, *NO ONE*, has the right to a job paid for by my tax dollars.

]]> By: Michael Gracie http://michaelgracie.com/2008/05/08/dude-the-recessions-in-your-backyard/#comment-9181 Michael Gracie Fri, 09 May 2008 00:19:26 +0000 http://michaelgracie.com/2008/05/08/dude-the-recessions-in-your-backyard/#comment-9181 <p>In some areas of the US, government jobs make up a fairly significant portion of the employment base - I suspect there are at least a handful of states where the state government is the largest employer. If you cut those jobs, those people immediately spend less. The tax base falls further.</p> <p>Tax cuts (or other such trickle-down stimulus that you may infer to), happen much later (if ever). And unlike the federal government some states are required to maintain balanced budgets, meaning they can't just borrow their way out of short-term fiscal imbalance. If you take into consideration the problems in the auction-rate markets, some cannot borrow at all.</p> In some areas of the US, government jobs make up a fairly significant portion of the employment base - I suspect there are at least a handful of states where the state government is the largest employer. If you cut those jobs, those people immediately spend less. The tax base falls further.

Tax cuts (or other such trickle-down stimulus that you may infer to), happen much later (if ever). And unlike the federal government some states are required to maintain balanced budgets, meaning they can’t just borrow their way out of short-term fiscal imbalance. If you take into consideration the problems in the auction-rate markets, some cannot borrow at all.

]]> By: mockmook http://michaelgracie.com/2008/05/08/dude-the-recessions-in-your-backyard/#comment-9180 mockmook Fri, 09 May 2008 00:06:28 +0000 http://michaelgracie.com/2008/05/08/dude-the-recessions-in-your-backyard/#comment-9180 How does cutting government jobs weaken an economy? How does cutting government jobs weaken an economy?

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