Monday, October 12, 2009
Second Great Depression Still Possible: <I>The Financial Times</i>
Yes, it will get worse before it gets better. In fact the coming economic collapse, because the economy has not truly collapsed as yet, will make the "recession" of last year look like a child's tea party.
As for the public sector contraction, it is happening in my state. Our less-than-popular Democratic governor has instituted a ten per cent across the board cut to all state departments because of a short fall in tax revenue collection. Lay-offs will likely fall heaviest on unionized state workers, who do not lover our Democratic governor in the first place, putting added strain on the already overtaxed unemployment insurance fund.
Our governor's potential Republican opponents, however, offer the typical GOP response to economic crisis: cut public spending even more, especially to social services such as child care, job training, drug counseling and so on. The irony lost on the typical Republican politician is, many in the GOP base, rural whites, rely on Depart of Human Services programs.
Read the Article at HuffingtonPost