 SnakeoilIgnore Button. The coward's feature.Premium
join:2000-08-05
Mentor, OH
kudos:1
 ·RoadRunner Cable
 ·magicjack.com
| With local and state governments cutting Budgets. I was watching the news last night and they mentioned as to how much the Ohio budget has been trimmed.
Which means pay freezes, no new hires [or very limited], college loans cut. Maybe some people offered early retirement.
Just wondering as to what type of ripple effect this might have on the economy. I know it has been "recovering" for a few months [if you can trust the press], but it is still weak.
Heck our local borders just shut down, meaning around 40 people, maybe a little more no longer have jobs [granted retail at the non-manager level shouldn't be considered a career].
I just don't see things improving, at least not the way the media wants you to think they are.
I know of a few companies that are cutting back on the work week, going to an 8 hour day, 4 days a week.
Add to all this, Gas and food prices are climbing.
So, IMO, I think we may be hiding for another downturn, I hope I am wrong, but it's not looking good.
--
To All Real Dads. For All Real Moms Every Real
Service. |
|
| Like it or not, the only way to keep an economy in the black is to either raise taxes or cut services.
I recall the austerity budgets of the 80's pretty well. Not pretty. High unemployment and rampant inflation. |
|
 dogmaXYZPremium
join:2002-08-15
Boulder City, NV
kudos:1 | reply to Snakeoil
said by Snakeoil:I just don't see things improving, at least not the way the media wants you to think they are.
I know of a few companies that are cutting back on the work week, going to an 8 hour day, 4 days a week.
Add to all this, Gas and food prices are climbing.
So, IMO, I think we may be hiding for another downturn, I hope I am wrong, but it's not looking good.
I don't foresee a "downturn" per se. I also don't see much of any real "upturn" either anytime in the near ... or distant future (10 - 15 years?). At least not for us common folk. Many of my friends who had been laid off or lost jobs in the past 24 Months have found employment. However, all of them have pretty much taken a 30% pay cut from their previous salaries. And their benefit packages are basically zilch in comparison.
If the average pay is now lower, then the tax revenue will be lower. Thus, all of the State/local government budget cuts.
With that being said, if we can get some decent inflation and escalating interest rates, like lugnut mentioned, it may be painful in the short run (5 years), but a by-product of inflation is higher wages. ...or at least should be higher wages.
Inflation is a nightmare for those that hold long term debt. So if one makes $40K/year now and has a fixed rate mortgage of say $1500/Month, in 5 years with inflation their income should rise to $55K/year. Even though a bottle of Pepsi cost $1 now, and $1.50 in 5 years, their mortgage still cost exactly the same. Consumers will then have more discretionary income in that scenario to infuse into the economy.
On the other hand, if interest rates and inflation are kept artificially low, we will maintain this flat economy and historically high unemployment. Although there are signs of inflation like you have observed (gas/food) Unfortunately, I think the later will be the case seeing as how the Federal government keeps their ridiculous monetary policies in place. |
|
| Runaway inflation is the biggest nightmare of all for retirees living on a fixed income. With 10,000 Boomers Per DAY turning 65 for the next 20 years, ( »2011 The year of reckoning, Baby Boomers Start To Turn 65 ) that becomes a serious issue for a LOT of people. At least as long as you remain in the workforce you have a chance of your wages keeping up with inflation. Myself I don't relish the notion of having to drop my life savings on a loaf of bread  |
|
| reply to Snakeoil
said by Snakeoil:I was watching the news last night and they mentioned as to how much the Ohio budget has been trimmed.
Which means pay freezes, no new hires [or very limited], college loans cut.
Student loans and Pell Grants are nothing more than government subsidies for colleges, that have been raising tuitions with no concern for their students or community. University of Michigan is a tax payer funded institution that has at least 30% foreign students, in the name of diversity. Sorry, as a tax payer, I see no need to educate the rest of the world. Many of those foreign student are here on scholarships that should be going to American students. |
|
| reply to lugnut
Stagflation is in force here. Wages decreasing, taxes rising, prices of just about everything rising.
Now with the Japanese crisis, semiconductor products are skyrocketing in price--basically anything based on flash ram.
My wife's company had several layoffs, a 10% pay cut in 2009, while Blue Cross Blu Shield medical premiums increased 23% last Dec. CT's governor just approved another 40% increase in BCBS premiums for this June. Where do these ivory tower folks think we're going to come up with the money? Wife just said that her company laid off several more employees this week.
The way things are going, the middle class will be gone, and America will sink into a new Dark Ages, where only the rich can afford housing, electricity, food, etc. |
|
public
join:2002-01-19
Santa Clara, CA | reply to Snakeoil
Re: With local and state governments cutting Budgets. said by Snakeoil:I was watching the news last night and they mentioned as to how much the Ohio budget has been trimmed.
It is not about the budget. In Ohio fake fiscal crises created by Snyder is used to privatize the state following a template from ALEC. Among others elected officials can be dismissed by a corporation.
Among other features is tax lowest incomes and poverty level pension at high rates.
»www.michaelmoore.com/words/must-···acrifice |
|
| We are in recession state, no wonder governments are trying their best to ease the suffering of their citizens. But they do not know that they made is quite adding some burden to them. |
|
|
|
| reply to public
We are in recession state, no wonder governments are trying their best to ease the suffering of their citizens. But they do not know that tax they made is quite adding some burden to them. |
|
pandoraPremium
join:2001-06-01
Outland
kudos:1 Reviews:
·ooma
·Google Voice
·Future Nine Corp..
·Comcast
1 edit | reply to Snakeoil
said by Snakeoil:Heck our local borders just shut down, meaning around 40 people, maybe a little more no longer have jobs [granted retail at the non-manager level shouldn't be considered a career].
Borders, Virgin Records, Blockbuster and other similar chains are dead. People use ebooks, and itunes. It's a lot easier to download a book, or order one from Amazon than to shop for overpriced stuff at a bookstore. These chains are dying due to new technology, not directly due to a downturn in the economy. Trying to save this would be like trying to save buggy and whip makers from Ford and GM at the turn of the century.
As to government trying to trim. Over the past few decades the cost of government as a percentage of the GDP has been growing, in other words government cost has been growing faster than the rest of the economy. This is not sustainable. Eventually government has to cut back it's rate of growth.
Borders is out of business, because they never evolved an online model. There is a humor piece about this, check out he following:
»www.youtube.com/watch?v=3TrPwOrf4sM
--
"People demand freedom of speech as a compensation for the freedom of thought which they seldom use." |
|
 jester121Premium
join:2003-08-09
Lake Zurich, IL
·voip.ms
| reply to public
said by public:It is not about the budget. In Ohio fake fiscal crises created by Snyder is used to privatize the state following a template from ALEC. Among others elected officials can be dismissed by a corporation.
So Ohio is the unique exception to the dozens of states facing financial ruin, and it's all a facade? I find that doubtful. |
|
SnakeoilIgnore Button. The coward's feature.Premium
join:2000-08-05
Mentor, OH
kudos:1 Reviews:
·RoadRunner Cable
·magicjack.com
| reply to pandora
Have you seen the price of ebooks lately? In some cases they are more then the price of the paperback version.
This is because publishers as well were caught flat footed with the demand for ebooks. So they still have some expensive real estate to pay for, and have to make up for the loss by charging more for ebooks.
I was fine with ebooks being 5 to 7 bucks, which is close to a paperback. But when they jumped to 11 to 12 bucks, forget it. At that price, I'll go buy a paperback. I could say go look for a torrent, but i respect the craft of writing to much to steal from the author.
--
To All Real Dads. For All Real Moms Every Real
Service. |
|
pandoraPremium
join:2001-06-01
Outland
kudos:1 Reviews:
·ooma
·Google Voice
·Future Nine Corp..
·Comcast
1 edit | said by Snakeoil:I was fine with ebooks being 5 to 7 bucks, which is close to a paperback. But when they jumped to 11 to 12 bucks, forget it. At that price, I'll go buy a paperback. I could say go look for a torrent, but i respect the craft of writing to much to steal from the author.
The last time I was at my local Borders (before they went out of business) I checked on half a dozen books and comparison shopped via my cell phone. Every book was less expensive ordered via Amazon. Even for physical books, it is less expensive to buy online. Amazon has the book preview feature, which allows you to see some of it's content, and also reviews.
I believe ebooks now outsell physical books, but regardless of the method you choose to buy a book, bookstores will likely exist in the future more or less as record or CD stores do today. As legacy stores, not as viable ongoing chains imo.
--
"People demand freedom of speech as a compensation for the freedom of thought which they seldom use." |
|
SnakeoilIgnore Button. The coward's feature.Premium
join:2000-08-05
Mentor, OH
kudos:1 | correct. physical bookstores are done for, for the most part.
--
To All Real Dads. For All Real Moms Every Real
Service. |
|
horsemouthPlease Clarify My CSPPremium
join:2002-03-13
canada | reply to pandora
said by pandora:said by Snakeoil:Heck our local borders just shut down, meaning around 40 people, maybe a little more no longer have jobs [granted retail at the non-manager level shouldn't be considered a career].
Trying to save this would be like trying to save buggy and whip makers from Ford and GM at the turn of the century. (youtube clip) I make good money selling my hand made whips on the internet. If I knew how to build a buggy I am sure I could make money off that also. One just has to think outside the box.
PS they start at $50.00 I have a pink one that is very popular . it is $75.00 tho+ shipping |
|
pandoraPremium
join:2001-06-01
Outland
kudos:1 Reviews:
·ooma
·Google Voice
·Future Nine Corp..
·Comcast
| said by horsemouth:I make good money selling my hand made whips on the internet. If I knew how to build a buggy I am sure I could make money off that also. One just has to think outside the box.
PS they start at $50.00 I have a pink one that is very popular . it is $75.00 tho+ shipping
Good for you. Once upon a time, horse whips and buggy's makers were the GM and Ford of today. Technology moves us along.
Let me know when you have made several billion selling your whips and employ a million or so to make them. 
--
"People demand freedom of speech as a compensation for the freedom of thought which they seldom use." |
|
| reply to Snakeoil
said by Snakeoil:I was watching the news last night and they mentioned as to how much the Ohio budget has been trimmed.
Which means pay freezes, no new hires [or very limited], college loans cut. Maybe some people offered early retirement.
Just wondering as to what type of ripple effect this might have on the economy. I know it has been "recovering" for a few months [if you can trust the press], but it is still weak.
Heck our local borders just shut down, meaning around 40 people, maybe a little more no longer have jobs [granted retail at the non-manager level shouldn't be considered a career].
I just don't see things improving, at least not the way the media wants you to think they are.
I know of a few companies that are cutting back on the work week, going to an 8 hour day, 4 days a week.
Add to all this, Gas and food prices are climbing.
So, IMO, I think we may be hiding for another downturn, I hope I am wrong, but it's not looking good.
You've also forgotten an even larger impact. The contractors tied to the government. Everything from new construction projects to existing services will be delayed, cut or reduced. That entire ecosystem will then ripple out even further. |
|
