A State of Austerity

These are the early days in the year 2011 – the year the U.S. and the rest of the world will recover from the “Great Recession”. At least that’s what semi-literate economists have been telling us. Here’s what they didn’t foresee, however – and can’t do anything about, anyway:

1. “SACRAMENTO, Calif. – If 2011 is hinting at a national recovery, there is little sign of it in statehouses across the country. States that have already raided their reserve funds, relied on borrowing or accounting gimmicks, and imposed deep cuts on schools, parks and public transit systems no longer can protect key services in the face of another round of multibillion dollar deficits.

“As governors roll out their budget proposals and legislatures convene this month, they do so amid a sputtering economic recovery and predictions of slow growth for years to come. State and local governments face lackluster revenue projections, worries from Wall Street over looming debt and the end of federal stimulus spending.” –

2. “Camden, N.J. – Some firefighters turned in their helmets and police officers their badges Tuesday as part of deep municipal layoffs destined to further erode the quality of life in Camden, already one of the nation’s most impoverished and crime-ridden cities. About 335 workers, representing one-sixth of the local government work forces, lost their jobs, according to Mayor Dana Redd. It was worst in the public safety departments, where nearly half the police force and close to one-third of the city’s firefighters were laid off.

“Laid-off firefighters walked eight blocks together from the police union hall to Fire Department headquarters, snaking past City Hall, then lined up their helmets in front of the building, picked them back up and started to turn them in along with their other gear. ‘It’s one of the worst days in the history of Camden,’ said the firefighters union president.” –

3. “THE TEXAS TRIBUNE – Thousands of Job Cuts May Be Just the Beginning …
“With some top state leaders warning that Texas’ dire fiscal situation will lead to the loss of several thousand state jobs, House budget writers will release their first draft budget today – and big job cuts may be just the beginning. House Appropriations Chairman Jim Pitts, who will file the budget bill today in the House, has spoken candidly about job losses. ‘There will be less state employees when we’re completed with this budget process, because we’re gonna have a whole lot less money to spend. We will cut a lot of programs that would not require state employees,’ Pitts said in a Texas Tribune event last week. ‘But in additional savings, we could require some furloughs.” –

“Lt. Gov. David Dewhurst said that … ‘8,000 state jobs could be eliminated.'” –

The cause of all this doom and gloom is stated above: “State and local governments face lackluster revenue projections,” and that’s because too many people are jobless and not paying taxes. With more than two dozen shuttered shipyards in California, New Jersey and Texas, “elected officials” still don’t understand that shipyards are the only solution to unemployment problems. How sad.