Quote:
Originally Posted by aceventura3
...There you have $22 billion of stimulus money going into a black hole.
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In fact, it is probably closer to 38 (states facing deficit) black holes if you like the IBD characterization and its hit job on California.
Many more objective economists attribute the fact that California has experienced severe budget shortfalls as a result of nearly 1/4 of all housing foreclosures coming in California.
California was doing pretty damned well until the housing bubble burst.....the 5th largest economy in the world...despite all those anti-business taxes that has IBD bitching and crying like a spoiled child.
In fact, one growing sector in California has been in green technology start-ups brought about by the state's forward looking environmental program, despite the IBD's false claims.
For the record, in FY 09, 38 states are facing budget deficits and nearly half the states in FY 10.
NCSL table
States can either raise taxes or cut spending. When they cut spending, they lay off employees, cancel contracts with the private sector, reduce payments to businesses and nonprofits that provide services, and cut benefis to individuals.
All of these actions remove demand from the economy, which only worsens a downturn, particularly for the most vulnerable populations that are hurt by state budget cuts.
ace..do you even know how that $22 billion would be allocated? I suspect not.
The IBD solution?.....just give more tax cuts to the wealthiest taxpayers and it will all work out?