How many years will it take for the Great Recession to be recognized as another depression by excessive debt? It is certain to be long after that fact. Clearly, the media coverage of the financial woes and the social consequences of the solutions proposed to solve them are not limited to the Midwest.
Budget shortfalls infect nearly every State within the Union. The budgetary problems of major players such as New York, New Jersey, California, etc dwarf those that have been receiving the bulk of media attention right now.
Big deal you may say. Material spending cuts within a consumption-centric economy, consumption accounts for more than 70% GDP, will have an immediate social impact. Keep that in mind as the 2012 presidential election approaches. Smart money knows that quantitative easing to infinity is the only option.
Headline: All Providence teachers receive layoff notices
The Providence Public School Department sent layoff notices Tuesday to every one of its 1,926 teachers, warning them they could lose their jobs at the end of this school year.
To be sure, not all teachers in Rhode Island’s capital city will be let go. But the warning was necessary because of the dire fiscal straits that both Providence and its school system are in.The school district is facing a nearly $40 million shortfall for the coming academic year.
The city’s financial condition is even worse. Providence, which faced a $57 million deficit a year ago, is preparing a budget that will contain major cuts to education, officials said. The city, which has been hit hard by the Great Recession, spends half its budget on schools.
Headline: GOP spending cuts would hit economy hard
The more federal spending Congress slashes this year, the greater the potential drag on economic growth, according to a new analysis from Goldman Sachs.
In a research note, economists at the Wall Street bank estimate that the House GOP’s spending bill — which would cut $61 billion between March and Sept. 30 — could reduce economic growth by 1.5 percentage points to 2 percentage points in the second and third quarters.
Post Source: State Budget Woes Ensure QE to Infinity