Skip to main content

Chart created by the Center for Budget and Policy Priorities
 
In the past 33 months, 446,000 Americans have been laid off from their state and local government jobs. In the third quarter that begins July 1, as many government entities begin their new fiscal year, the forecast says another 110,000 will lose their jobs.
Though tax revenue is starting to rise, states are still wrestling with multi-billion-dollar budget gaps. Federal stimulus funds helped minimize job cuts until now, but that money essentially runs out on June 30.

So states are planning to slash funds for education, social services and local governments, as well as downsize their payrolls even more, in the coming fiscal year.

And that's the good news.

The bad news is that local governments are in even worse shape. Not only are they losing state aid, but they are finally feeling the fallout from the mortgage meltdown. Property tax assessments, a major funding source for municipalities, have only started to drop.

And that bad news is compounded by worse news. Because even as sales and income tax revenues are rising in those states that have them, digging out of the financial quagmire so many of them have fallen into likely will take a couple of years or longer, perhaps much longer.

Property-tax revenue, which always takes time to adjust to fresh assessments of value, and which state and local governments depend on for much of their income, is, in many cases, only now showing reductions from the impact of the housing crash. Property taxes are a major funder of schools in every state. Not surprisingly, as we are all too well aware, teacher lay-offs are a major part of how many states—and not just Republican-dominated ones—are dealing with their financial crises.

While income and sales tax revenues have been rising, the Center for Budget and Policy Priorities views state and local government prospects for fiscal 2012 to be as grim, if not worse, than the past two years. That, in part, is because most of the federal stimulus money these governments received as part of the Obama administration's American Recovery and Reinvestment Act passed in February 2009 has been spent, although some states have kept large amounts of these funds in reserve. Nebraska, for instance, still has available 38 percent of the federal dollars it received through the program.

Even so, 26 states are already projecting an aggregate shortfall of $75 billion in fiscal 2013. And that is after draconian cuts to government programs, including large numbers of lay-offs.

State and local government spending has a tremendous impact on infrastructure, schools, medical care and public services such as policing and fire fighting. Many of them carry out extensive regulatory tasks as well. Moreover, plenty of small businesses depend on them for their very existence. That fact is no doubt one of the reasons that some small businesses, according to the latest survey by the National Federation of Independent Businesses, are not only not hiring at their traditional levels during a recovery from recession, but have also begun laying off workers. This may be why initial claims for unemployment insurance remain stubbornly high.

It's a vicious circle. Fewer private-sector jobs, less tax revenue; less tax revenue, fewer public-sector jobs. And no end in sight. The Republicans' proposal for more jobs: Cut taxes. The Democrats': Cross fingers.

Originally posted to Daily Kos on Tue Jun 07, 2011 at 06:20 PM PDT.

Also republished by The Amateur Left.

EMAIL TO A FRIEND X
Your Email has been sent.
You must add at least one tag to this diary before publishing it.

Add keywords that describe this diary. Separate multiple keywords with commas.
Tagging tips - Search For Tags - Browse For Tags

?

More Tagging tips:

A tag is a way to search for this diary. If someone is searching for "Barack Obama," is this a diary they'd be trying to find?

Use a person's full name, without any title. Senator Obama may become President Obama, and Michelle Obama might run for office.

If your diary covers an election or elected official, use election tags, which are generally the state abbreviation followed by the office. CA-01 is the first district House seat. CA-Sen covers both senate races. NY-GOV covers the New York governor's race.

Tags do not compound: that is, "education reform" is a completely different tag from "education". A tag like "reform" alone is probably not meaningful.

Consider if one or more of these tags fits your diary: Civil Rights, Community, Congress, Culture, Economy, Education, Elections, Energy, Environment, Health Care, International, Labor, Law, Media, Meta, National Security, Science, Transportation, or White House. If your diary is specific to a state, consider adding the state (California, Texas, etc). Keep in mind, though, that there are many wonderful and important diaries that don't fit in any of these tags. Don't worry if yours doesn't.

You can add a private note to this diary when hotlisting it:
Are you sure you want to remove this diary from your hotlist?
Are you sure you want to remove your recommendation? You can only recommend a diary once, so you will not be able to re-recommend it afterwards.
Rescue this diary, and add a note:
Are you sure you want to remove this diary from Rescue?
Choose where to republish this diary. The diary will be added to the queue for that group. Publish it from the queue to make it appear.

You must be a member of a group to use this feature.

Add a quick update to your diary without changing the diary itself:
Are you sure you want to remove this diary?
(The diary will be removed from the site and returned to your drafts for further editing.)
(The diary will be removed.)
Are you sure you want to save these changes to the published diary?

Comment Preferences

  •  Democrats: Don't Mention the Economy (20+ / 0-)

    (I let it slip out once or twice, but I think I got away with it.)

    We are called to speak for the weak, for the voiceless, for victims of our nation and for those it calls enemy.... --ML King "Beyond Vietnam"

    by Gooserock on Tue Jun 07, 2011 at 06:27:34 PM PDT

  •  I know the drill... (16+ / 0-)

    ...I'm a retired public employee myself. My particular section worked best with a minimum of 6 people: the supervising engineer and 5 subordinates. But since 2003 there were only 4 people in the section altogether, and while we were promised more in 2005, the City of Chicago cut the unfilled positions from the budget.

    There are now only three people in the section, and as far as I know, my old position is still in the budget, but unfilled. I doubt Rahmbo will worry about filling it, or any other positions, since he seems to be Boy Mayor-Second Section, even though the work still needs to be done. And in 2013, I think another of my coworkers will be retiring...

    Float like a manhole cover, sting like a sash weight! Clean Coal Is A Clinker!

    by JeffW on Tue Jun 07, 2011 at 06:37:45 PM PDT

    •  And the results/repercussions will... (14+ / 0-)

      ...eventually come to pass.  Penny-wise and pound-foolish many of these layoffs are...because public employees have ALWAYS been a favorite "whipping boy" for all sides.  And there's little understanding by the masses as to how, exactly, things really get done.

      They turn on their water and it's magic!

      They turn on their lights and it's magic!

      They flush their toilets and it's magic!

      They take out their trash and it's gone the next day; magic!

      ...and so it goes.

      •  And they drive down the street... (6+ / 0-)

        ...and get a decent progression with the traffic signals!

        Oh, and if they need a new signal, who does the study?

        Or, if there seems to be some problem, who goes out in the field and checks it? And who draws up timing changes to fix that problem?

        Something to consider: the City of Chicago had 2,904 signalized intersections. How much work do you think three traffic engineers can do in keeping them coordinated? How about two? One?

        Drive carefully out there!

        Float like a manhole cover, sting like a sash weight! Clean Coal Is A Clinker!

        by JeffW on Tue Jun 07, 2011 at 06:54:24 PM PDT

        [ Parent ]

        •  Last week my husband was rear-ended. (6+ / 0-)

          Of course, a police report was required.  They, both my husband AND the driver who hit him, called 911.

          After waiting very close to two hours, without an officer showing up, and after checking again with 911 only to find out the call hadn't yet been dispatched, they called 311, got the address of the nearest police station and went there to file the report; good thing the other driver's Dad showed up to give him a ride, because his car was not drivable.

          Staffing shortages are already starting to show.

          And when things like coordinated signal lights begin to fail, and the skeleton staff can't keep up...well, it will just prove how bad gov't. is!  >:P

      •  ah...but you missed something (8+ / 0-)

        ...contract out the water
        ...contract out the lights
        ...contract out waste disposal
        ...contract out the tree maintenance
        to people who could give less than a flying flip about your community, then contract out
        ...the police
        ...the fire
        because lordy knows they make too high of a pension after risking their lives daily to protect ours, then...
        ...eliminate parks and rec programs
        ...close the libraries
        because education, literacy and healthy programs are just not a priority
        ...but dammit...
        GIVE THE TOP 1% THEIR F*CKIN' TAX BREAKS!!

        this ranting from a currently employed public employee...who hopes to stay that way...who actually doesn't hate my employer but sees all too well the impacts MB clearly articulated...and then some.  so to be clear, the rant is directed to the top 1%, for those who might not see the obvious.

        sigh.

        •  Indeed. (2+ / 0-)
          Recommended by:
          JeffW, Heather in SFBay

          You know it, all too well.

          And the punchline?  Privatization doesn't save anything!

          •  I learned that before I worked for the City... (3+ / 0-)
            Recommended by:
            Marjmar, jayden, Heather in SFBay

            ...working for consulting engineering firms. They're good for special projects, big multi-item things. Day to day stuff, however, they're too damned expensive. And, they can't interact directly with City employees, except for supervisors, due to City and union work rules.

            Float like a manhole cover, sting like a sash weight! Clean Coal Is A Clinker!

            by JeffW on Tue Jun 07, 2011 at 07:30:12 PM PDT

            [ Parent ]

        •  They're running out of money... (4+ / 0-)
          Recommended by:
          Marjmar, jayden, gsbadj, Heather in SFBay

          ...for the contract employees in Chicago. They had a tishload of them in the Division they moved us back to at CDOT before I retired. The deputy commissioner and I go back a ways, and she told me that there are no more corporate funds available for the onsite consultant kids.

          Nothing will get done. Nothing.

          I wish you the best of luck in your situation.

          Float like a manhole cover, sting like a sash weight! Clean Coal Is A Clinker!

          by JeffW on Tue Jun 07, 2011 at 07:26:39 PM PDT

          [ Parent ]

          •  thanks (1+ / 0-)
            Recommended by:
            Marjmar

            and concur with both you and Marjmar - short term, project specific assistance is one thing, and it can be appropriate and cost effective.  but long term it ISN'T cheaper and you do lose the inherent expertise and knowledge of how things work, how residents feel, or ways to make things work at your site, in your community that contractors often don't have a clue about...or care.

            the thing here in CA, and for my situation in particular, is waiting to find out what's going to happen to redevelopment.  i'm in a suburban town in a county that consistently ranks in the top 3 most expensive places to live in the country.  we have made workforce/affordable housing development a priority to the greatest degree possible...and with the cost of land and cost of everything around here, losing redevelopment housing set-aside funds will obliterate our ability to do any in the future.  That in combination with the CA Supreme Court letting the Palmer decision stand and other decisions (PDF) affecting affordable housing has painted a bleak future for the average family of 4 finding any rental housing or participate in the rare first time homebuyer opportunity they can afford.  

            and all that says nothing about the number of jobs that will be lost in our city because of it.

            there are bigger fish that could be fried in this budget solution - like oil extraction fees - that no one is willing to even put on the table...and that irritates me to no end.

  •  But Rush said States' job cuts R GOOD for economy (3+ / 0-)

    Plutocracy too long tolerated leaves democracy on the auction block, subject to the highest bidder ~ Bill Moyers

    by Lefty Coaster on Tue Jun 07, 2011 at 06:38:15 PM PDT

    •  From Limbag's show today (3+ / 0-)
      )*(

      This is what's offensive to me.  Somehow cutting government jobs is a drag on the economy.  It's the opposite because it's more money staying in the private sector.  So just keep a sharp eye.  You have been warned.  You're hearing it first here.  All of this is a precursor for another stimulus.  Remember, it's worse than they thought.  That ten years, decade of Bush, why, worse than we thought, and it's gonna take longer than we thought, and we're trending in the right direction, but we can't afford to change horses midstream.  And current stimulus money going to the states ends June the 30th.  

      By the way, let me ask you people a question.  Now, very serious.  We just shared with you this story about all these supposed job cuts.  What do we have here?  Forecast to lose 110,000 jobs, state and local government employment has been a drag on the economy.  A loss of 23,000 jobs a month over the past three months.  Let me ask you a question.  It's basically 75,000 jobs, roughly, 70,000 jobs been cut in the states last three months.  How many of you have noticed significant reductions in service with the cuts to government jobs?  Have you?  No, I know you haven't.  You know why?  Because there hasn't been any news stories on it.


      Plutocracy too long tolerated leaves democracy on the auction block, subject to the highest bidder ~ Bill Moyers

      by Lefty Coaster on Tue Jun 07, 2011 at 06:54:29 PM PDT

      [ Parent ]

      •  Someday Limplog will drive over a bridge... (6+ / 0-)

        ...in his big, fancy car. It will be a bridge that needed major repair or replacement, but only got the "spit and bailing wire" treatment by the local governement. And that day it will fail...

        There are many bridges out there like that...

        Drive carefully, Mr. Limplog!

        Float like a manhole cover, sting like a sash weight! Clean Coal Is A Clinker!

        by JeffW on Tue Jun 07, 2011 at 06:58:08 PM PDT

        [ Parent ]

      •  Translation (0+ / 0-)

        "It is good that workers will get paid less money and capitaliists will make more profits."

        As for reductions in service, we have libraries closing, crappy roads, parks closed or grass uncut and chunks of overpasses falling off.

        If you don't see it, you're not looking.

        "Unseen, in the background, Fate was quietly slipping the lead into the boxing glove." P.G. Wodehouse

        by gsbadj on Wed Jun 08, 2011 at 04:26:44 AM PDT

        [ Parent ]

  •  GiveAway$ to Pig$ VS. 1/2 Million Families (6+ / 0-)

    who spend most of their money in the local community ... more or less -

    well, except for those mortgage payments bundled off to the caymens and those usurious car loan payments siphoned off to some other off shore tax dodge -

    MOST of the money MOST of these people spend goes right back into some local economy - the kids' soccer / baseball league and supplies, the local hair cuts, the local branch of the national mega-mart for housing stuff and food stuff -

    BUT - obama is gonna go repeat right wing lies about give aways to rich pigs cuz if the rich pigs haven't had their asses kissed and their pockets stuffed, they'll take their genius to ... the slums of the 3rd world and teach those people how to use windows and google and amazon!

    NO MORE pennies, NO MORE minutes, NO MORE votes for fucking sell outs - 3+ decades is enough.  

    I"m still a Democrat - and when a "I welcome their hatred" fighter shows up, a fighter who isn't a fucking liar, I'll donate again.

    rmm.

    Yond Cassius has a lean and hungry look; He thinks too much: such men are dangerous

    by seabos84 on Tue Jun 07, 2011 at 06:45:15 PM PDT

  •  Gee, if only there was some way (10+ / 0-)

    a larger entity could step in and prop up the economy for a little bit to spur aggregate demand.

    "The real power is in the hands of small groups of people and I don't think they have titles." -- Bob Dylan

    by nonprofit jim on Tue Jun 07, 2011 at 06:45:51 PM PDT

  •  property tax revenue has been falling for (6+ / 0-)

    years.  and, did you know that no property taxes are paid on foreclosed houses?  in fact, the lenders often receive supplemental refunds.  

    •  Our property taxes haven't dropped in Portland (5+ / 0-)

      I've been waiting and hoping, but so far no.  The County floated a school bond measure last month that would have levied an additional $2.00 per $1,000 assessed value, and it was beaten fairly badly.  People just can't afford it now.

      If a politician found he had cannibals among his constituents, he would promise them missionaries for dinner. H. L. Mencken

      by Keith930 on Tue Jun 07, 2011 at 07:02:21 PM PDT

      [ Parent ]

      •  I remember my wife rolling her eyes... (2+ / 0-)
        Recommended by:
        JeffW, Marjmar

        ...when I confidently assumed (always dangerous) after the 2008 election that while the GOP might fight a WPA-esque direct jobs effort, they'd allow a multiple-year Revenue Sharing program since GOP-controlled states and metro areas stood to lose out if they didn't.

        These guys are playing a war of attrition and they don't care how many of their own ground troops get chewed up and spit out in prosecuting the battle plan. And their ground troops dutifully understand that their sacrifice is "worth" the short term comfort and eventual success of their "Generals."

        The so-called "rising tide" is lifting only yachts.

        by Egalitare on Tue Jun 07, 2011 at 07:29:41 PM PDT

        [ Parent ]

      •  taxes are not going down for property owners, (1+ / 0-)
        Recommended by:
        schnecke21

        much, the revenue is going down due to all the foreclosed properties in this area. Although, there have been many thousand assessment adjustments based on the decline of market values that were enrolled during the "boom", which also results in a big loss of revenue.  

      •  That's because of Measure 47/50... (3+ / 0-)
        Recommended by:
        jayden, Keith930, Friend of the court

        ...property taxes were capped at a 3% increase per year.  

        The real market value of property rose so much that even when it starts falling, it's still higher than the assessed value, so taxes will still increase 3% until the two values meet.

        There's also Sam Adams' shenanigans in declaring Urban Renewal Districts so Pearl District and South Waterfront residents get artificially low taxes, while people in poorer parts of the city pay it all.

        9-11 changed everything? Well, Katrina changed it back.

        by varro on Tue Jun 07, 2011 at 09:51:32 PM PDT

        [ Parent ]

  •  Completely unfair, MB (1+ / 0-)
    Recommended by:
    JeffW
    The Republicans' proposal for more jobs: Cut taxes. The Democrats': Cross fingers.

    The Dems passed $800B in stimulus funds, small business loan bills and pushed for extended unemployment benefits.

    To say that they're just "crossing their fingers" is simply NOT supported by the facts.

    •  No more money in the stimulus... (14+ / 0-)

      ...package that was passed 29 months ago. Four million Americans will lose their unemployment benefits between April 1 and December 31.

      I didn't say Democrats hadn't previously done anything about jobs. I'm talking about now.

      We had a jobs summit in December 2009. Some terrific ideas came out of that. But the best ones were not adopted by the administration. And that's one of the reasons we are where we are in terms of jobs. Since January, of course, the House can block any effort, but before that there was at least the chance of doing something along the lines of an updated WPA or Civil Works Administration.

      The fact is, if you listen to what former Council of Economic Advisers Chief Christina Romer has been saying since she left her White House post, there is a lot the administration should be considering but isn't.

      Right now what way too many Democrats are doing is hoping the economy gets better. But they aren't offering any proposals about how to make that happen.

      Don't tell me what you believe. Tell me what you do and I'll tell you what you believe.

      by Meteor Blades on Tue Jun 07, 2011 at 06:56:19 PM PDT

      [ Parent ]

      •  well, I think (1+ / 0-)
        Recommended by:
        jayden

        You're spot on. I wish we could purge this type of spinelessness from the Democratic party. It's killing us. It was when Dean ran, and it is today.

        Catch St. Louis' progressive talk show, The Murdock Report, every Tuesday @ noon! Stream or download it: www.wgnu920am.com I do the twit thing too @Smokin'JoeWGNU

        by Da Rat Bastid on Tue Jun 07, 2011 at 07:07:53 PM PDT

        [ Parent ]

      •  Not the same ... (1+ / 0-)
        Recommended by:
        JeffW

        ... now you're saying "do more". That's fine. But the talk about direct hiring or public works acts was never politically viable which even Romer has recently admitted.

        There is much more difference between the GOP, who are deliberetly doing nothing AND using the recession as an excuse to cut their pet-peeve programs, and the Dems not being bold enough.

        •  I was saying "do more" in January 2009... (7+ / 0-)

          ...and what was said by quite a few people at the time was 1) that if the stimulus wasn't enough, Obama could come back and ask for more, and 2) no way would Congress pass more.

          My response then was that 1) there would be only one bite of the apple on stimulus because all Presidents lose clout as their term of office ages, and 2) you can be sure that something won't happen if you don't try it.

          I am not saying that a larger stimulus could definitely have been gotten through Congress; but we'll never know because no attempt was made.

          What I'm asking the party I have been involved 48 years with, four years before I could vote, the party that I have contributed thousands of my dollars and thousands of my activist hours to,  the party whose candidates I have phone-banked for, and walked precincts for and raised money for, my party through thick and thin, is to come up with a good jobs proposal package and hammer on it despite Republican intransigence for the next 17 months. Give voters who aren't diehards like me a reason to vote for Democrats other than the Republicans are terrible. Give activists like me a message we can take door to door that people can identify with on the jobs front.

          A good proposal generates a good message. Enough with constantly playing defense and rearguard action. We need an offense.

          Don't tell me what you believe. Tell me what you do and I'll tell you what you believe.

          by Meteor Blades on Tue Jun 07, 2011 at 07:31:38 PM PDT

          [ Parent ]

          •  Amen. (1+ / 0-)
            Recommended by:
            jayden
            Give activists like me a message we can take door to door that people can identify with on the jobs front.

            To every millionaire who decries they don't want their grandchildren paying for the deficit, I say: PAY MORE TAXES NOW and your grandkids won't have a deficit burden.

            by gooderservice on Tue Jun 07, 2011 at 08:11:22 PM PDT

            [ Parent ]

            •  How abou this? (0+ / 0-)

              Dem & Obama actions in 2009 took us from losing 700k+ jobs / month to adding 200k+ jobs / month.

              What did the Repubs do? They fought it the entire way, took their marbles home and wouldn't play.

              BTW, a larger stim bill may have increased those #s marginally.

              But high energy costs, tsunamis and floods would still have a negative effect on the jobs report.

              Don't panic over only adding 54k net new jobs in 1 month's jobs report.

              •  No, that won't work. (2+ / 0-)
                Recommended by:
                pot, jayden

                For instance, I urge you to vote for the Democrats because in 2009 they took us from losing 700k+ jobs / month to adding 200k+ jobs / month. (Except it wasn't 200k a month)

                For instance, Mr./Ms who doesn't have a job or have a family member or friend who doesn't have a job, I urge you to vote for Democrats because What did the Repubs do? They fought it the entire way, took their marbles home and wouldn't play. Translated:  The Democrats weren't strong enough to stand up to republicans and fight them.

                For instance, I urge you to vote for Democrats because BTW, a larger stim bill may have increased those #s marginally.

                For instance, I urge you to vote for Democrats because  high energy costs, tsunamis and floods would still have a negative effect on the jobs report.  (Not that I could follow up with meaningful points about the Democrats who fought for climate change laws and renewable energy programs)

                For instance, I urge you to vote for Democrats because your husband/wife/sister/brother who still hasn't been able to find a job for over a year, take heart:  Don't panic over only adding 54k net new jobs in 1 month's jobs report.  Yeah, yeah, don't panic.  Your cost of living is still the same, yet you don't have a job.

                As Meteor Blades so eloquently stated it:

                Give activists like me a message we can take door to door that people can identify with on the jobs front.

                The elected Democrats haven't done that.

                Happy clappy is not contagious to the voting public.  It just isn't.

                To every millionaire who decries they don't want their grandchildren paying for the deficit, I say: PAY MORE TAXES NOW and your grandkids won't have a deficit burden.

                by gooderservice on Tue Jun 07, 2011 at 08:45:59 PM PDT

                [ Parent ]

              •  The jobs report isn't the only... (2+ / 0-)
                Recommended by:
                pot, jayden

                ...factor here. Look at the ISM report. Look at the GDP report. Look at the Conference Board's report on consumer confidence, and its leading economic indicators. Look at the National Federation of Independent Business survey for May. Look at what 11 of the 12 Federal Reserve branches are saying about a slowdown, the second since the recession was officially over 24 months ago.

                Look, I am not blaming Obama and (most of) the Democrats for what happened to the economy starting in 2007. It's easy enough to bash Republicans for what happened, and I do. But excuses just don't cut it when you're going door-to-door. A positive Democratic proposal for creating millions of jobs, a proposal the party actually plans to push should it regain the House, would go a long way to helping it regain the House by giving us something to huzzah to the voters.

                The 130,000 jobs per month created over the past 15 months are definitely better than the sharp stick jabbing us in the eye previously. But it's anemic this early in a recovery. Last year's GDP growth was 2.8%. We're looking at possibly 2.5% this year. That simply is not enough to sustain job growth that puts millions back into a job. In my ZIP Code, where median household income is half what it is for the state overall (California) and unemployment is very high, people are suffering a great deal. They vote heavily Democratic. But, as we found in canvassing in 2010, they're not enthusiastic about it now, and while most won't vote Republican, they may very well not turn out, and that can be just as bad.

                Don't tell me what you believe. Tell me what you do and I'll tell you what you believe.

                by Meteor Blades on Tue Jun 07, 2011 at 09:02:52 PM PDT

                [ Parent ]

          •  If I could rec your post anymore, I would! (0+ / 0-)

            Well thought out post. Give us activists something to fight for on the jobs front. Too bad OFA was all but abandoned after the 08 election. I only get emails from them when they want money, never for anything else.

            Democrats who enable implementation of Republican policies do more to destroy the Democratic Party than anyone. - Big River Bandido

            by pot on Tue Jun 07, 2011 at 09:34:23 PM PDT

            [ Parent ]

    •  Stimulus is old news. Stimulus money is gone. (2+ / 0-)
      Recommended by:
      schnecke21, jayden

      The money is gone, it means nothing at this current point in time, the stimulus is 2+ years old. AND people hate it (unfairly or not, that is a fact based on many polls). Hopefully Dems have a better message then "we passed the Stimulus over 2 years ago, why aren't you happy!". And 40% of the stimulus was tax cuts which was a mistake in my opinion. The stimulus helped for sure but the problems are still here and unemployment actually went up last month. And it is supported by the facts, they are CURRENTLY crossing their fingers.

      Sorry for being so pessimistic, I just can't find a job and it is really taking a toll on me mentally.

      Democrats who enable implementation of Republican policies do more to destroy the Democratic Party than anyone. - Big River Bandido

      by pot on Tue Jun 07, 2011 at 08:02:13 PM PDT

      [ Parent ]

  •  Slashing police departments might actually (6+ / 0-)

    ..create jobs. What lazy unemployed guy wouldn't just about die for a minimum wage security guard position watching over a gated community?

    Does the Republican Party think that becoming "Banana Republic" is something to aspire to - or are they just dumber than dirt?

    An imbalance between rich and poor is the oldest and most fatal ailment of all republics - Plutarch

    by Anthony Page aka SecondComing on Tue Jun 07, 2011 at 06:50:46 PM PDT

    •  Both. (5+ / 0-)
      Does the Republican Party think that becoming "Banana Republic" is something to aspire to - or are they just dumber than dirt?

      Float like a manhole cover, sting like a sash weight! Clean Coal Is A Clinker!

      by JeffW on Tue Jun 07, 2011 at 07:00:33 PM PDT

      [ Parent ]

    •  Impoverishing people (4+ / 0-)

      Makes them easier to control. I know it sounds contradictory, but it remains the rule rather than the exception. Make someone desperate to shelter, feed & clothe themselves, and higher notions become irrelevant.

      Catch St. Louis' progressive talk show, The Murdock Report, every Tuesday @ noon! Stream or download it: www.wgnu920am.com I do the twit thing too @Smokin'JoeWGNU

      by Da Rat Bastid on Tue Jun 07, 2011 at 07:03:07 PM PDT

      [ Parent ]

      •  That brings to mind this piece... (11+ / 0-)

        ...that I ran across when I was reading the link to Dean Baker's piece in yesterday morning's roundup:

        Why Can’t More Poor People Escape Poverty? A radical new explanation from psychologists

        An excerpt:

        Nowhere is this revelation more important than in our efforts to understand poverty. Taking this model of willpower into the real world, psychologists and economists have been exploring one particular source of stress on the mind: finances. The level at which the poor have to exert financial self-control, they have suggested, is far lower than the level at which the well-off have to do so. Purchasing decisions that the wealthy can base entirely on preference, like buying dinner, require rigorous tradeoff calculations for the poor. As Princeton psychologist Eldar Shafir formulated the point in a recent talk, for the poor, “almost everything they do requires tradeoff thinking. It’s distracting, it’s depleting … and it leads to error.” The poor have to make financial tradeoff decisions, as Shafir put it, “on anything above a muffin.”

        Last December, Princeton economist Dean Spears published a series of experiments that each revealed how “poverty appears to have made economic decision-making more consuming of cognitive control for poorer people than for richer people.” In one experiment, poor participants in India performed far less well on a self-control task after simply having to first decide whether to purchase body soap. As Spears found, “Choosing first was depleting only for the poorer participants.” Again, if you have enough money, deciding whether to buy the soap only requires considering whether you want it, not what you might have to give up to get it. Many of the tradeoff decisions that the poor have to make every day are onerous and depressing: whether to pay rent or buy food; to buy medicine or winter clothes; to pay for school materials or loan money to a relative. These choices are weighty, and just thinking about them seems to exact a mental cost.

        The so-called "rising tide" is lifting only yachts.

        by Egalitare on Tue Jun 07, 2011 at 07:12:56 PM PDT

        [ Parent ]

  •  Bernanke (3+ / 0-)
    Recommended by:
    JeffW, Meteor Blades, Eric Nelson

    This must be why the Bernank said today that growth will be better in the second half of the year.

    Unbelievable that this guy is Fed Chairman. I just hope he knows he is lying (for the good of the economy) and not a believer in what he is saying.

    I have said from early on that any growth that does come will be offset by losses in the public sector, meaning that overall growth will remain weak at best for some time.

    "I can live with doubt and uncertainty and not knowing. I think it's much more interesting to live not knowing than to have answers which might be wrong". Feynman

    by taonow on Tue Jun 07, 2011 at 06:52:59 PM PDT

    •  Better than the miserable 1.8 percent... (5+ / 0-)

      ...it was in the first quarter and the 2% it's shaping up to be in the second quarter?

      Five months ago, Bernanke was saying we could see 4% GDP growth in 2011. Getting there would require 6% growth in the 3rd and 4th quarters. We haven't seen that kind of growth for a decade, a single quarter, plus four quarters out of 40 in the '90s.

      Don't tell me what you believe. Tell me what you do and I'll tell you what you believe.

      by Meteor Blades on Tue Jun 07, 2011 at 07:06:30 PM PDT

      [ Parent ]

    •  Bernanke is an idiot (2+ / 0-)
      Recommended by:
      JeffW, pot

      He is the same guy who did nothing to stop Paulson from letting Lehman Brothers fail, which crashed the economy.  Geithner too.  

  •  And why in 1937 did the Depression not end? (7+ / 0-)

    Because FDR knuckled under to a Congress that wanted more cuts and the Depression soldiered on.

  •  Bernanke probably is right. (7+ / 0-)

    I am sure there will be growth for corporations, it just won't be happening in the USA. Don't forget folks, corporate profits continue to soar higher. The system has been repaired and now rich people will get richer without having to share any of it.

    Our current economy is the result of a tremendous amount of work by the rich. Their money is now speech and thus, allowed to rig our elections and write our legislation. Greed knows no bounds and now American workers get to "compete" with desperate folks in 3rd world countries.

    The system is completely broken and tinkering around the edges with unoffensive "bipartisan" programs ain't gonna get it done.

    -7.5 -7.28, Democratic Socialism...It's not just for Europeans.

    by Blueslide on Tue Jun 07, 2011 at 07:14:50 PM PDT

  •  Now that's a real bikini graph. (0+ / 0-)

    "Misfortune shows those who are not really friends." Aristotle Fuldheim's long and distinguished career - where, at age 91, .,,,. suffered a stroke on July 27, 1984, shortly after interviewing U.S. President Ronald Reagan via satellite.

    by JugOPunch on Tue Jun 07, 2011 at 07:22:32 PM PDT

  •  I think you're being overly generous... (0+ / 0-)
    The Republicans' proposal for more jobs: Cut taxes. The Democrats': Cross fingers.

    ...regarding crossing the fingers.  I'm not even sure they comprehend and are taking notice enough to cross their fingers.

    To every millionaire who decries they don't want their grandchildren paying for the deficit, I say: PAY MORE TAXES NOW and your grandkids won't have a deficit burden.

    by gooderservice on Tue Jun 07, 2011 at 08:13:10 PM PDT

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site