My blogging output has been quite low lately due to workload at my day job. I enjoy having a day job, and prefer to remain employed. That said, the credit crisis could destroy my industry (and many others) and literally put thousands, if not millions out of work.
Even Governor Bill Ritter decided to suspend hiring and construction projects due to lower state revenues.
Just days after discounting an economic forecast that predicted a $100 million shortfall in the current year's state budget, Gov. Bill Ritter today announced a partial hiring freeze for state employees and other steps to cut spending.
"These are uncertain times to say the least," [ Bill ] Ritter told reporters at a news conference in which he announced the moves, which also include delaying construction projects on college campuses and paying for full-day kindergarten.
Officials could not immediately say how many positions that might include or how much might be saved. The Democratic-led legislature approved a budget adding 1,300 new employees to the state payroll this year, a move Republicans have repeatedly criticized.
One wonders if Governor Ritter's illegal property tax freeze may have something to do with the budget shortfall. However, Ritter's unionization of state employees will cost taxpayers even more during future years. Obviously, the credit crunch would curtail development in this state and put many people out of work.
Meanwhile, economist and blogger Megan McCardle wrote perhaps the best defense of the proposed federal economic bailout I have seen.
My basic reasoning is this: given just how badly the Great Depression sucked, I'm willing to gamble on stopping it, even if that gamble fails, even if it is not necessary (a question that, if we actually go through with it, will be much argued and never answered). I'm not willing to gamble for the bankers; the worst thing that will happen to them is that they retire on a pittance, or take a boring job somewhere. I'm worried about the 40 million or so people who might end up out of work, and with nowhere to go. I'm willing to do quite a bit to stop that from happening, even let the bankers off scott free. I don't think it's actually necessary to do that, but if I have to choose between helping the 40 million, or expressing my moral outrage--well, there's always skywriting.
I agree wholeheartedly with this statement in principle. However, Congress needs to prepare a plan that is minimal in scope. Unfortunately, the Democrats seem more interested in playing politics and assigning blame than passing legislation for which they have the votes to pass. Unfortunately, these events are occurring during the heart of the political campaign season and it seems unlikely that anything resembling a clean bill will come from this Congress.
by Civil Sense
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