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Drudge Retort: The Other Side of the News
Friday, August 14, 2020

With tax revenues plummeting, states could face a cumulative budget gap of at least $555 billion through the 2022 fiscal year, according to one estimate. Economists warn that, unless Congress intervenes, the long-term financial damage might be greater than after the recession of 2007-9. Nearly all states are required to balance their budgets, meaning officials will need to plug shortfalls by tapping rainy-day funds, raising taxes or cutting costs, including by eliminating jobs.

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Democrats insist that states need more money and have proposed as much as $1 trillion, saying it would support needed services and help the economy recover more quickly.

Jerome H. Powell, the Fed chairman, regularly warns that state job cuts could hurt the economy's ability to recover, and his colleagues say that public-sector budget trouble is one of the country's primary vulnerabilities.

"It will hold back the economic recovery if they continue to lay people off and if they continue to cut essential services," Mr. Powell said during congressional testimony in June. "In fact, that's kind of what happened post the global financial crisis."

With unemployment high and many businesses expected to close, states are bracing for more safety net costs on top of the public health expenses they are already incurring. They spend a large chunk of their budgets on Medicaid payments and services for low-income residents.

Yet the Trump administration and many Republican lawmakers have largely brushed off state financial woes, insisting that governors and other local leaders foot part of the pandemic aid bill and refusing to "bail out" Democratic-led states struggling with huge shortfalls in their public pension plans.

Hey all you Republicans who happen to live in blue states, your President and party doesn't give a tinker's damn about you. They don't care about suffering workers in your states and they don't care about workers depending upon public pension plans that have been hamstrung for years due to budget restraints and other state priorities which have left them underfunded.

Republicans are the only party on the planet that when faced with a catastrophic drop off in economic activity, look at that giant hole and say "Not my problem," as though the people being crushed in the wreckage actually brought the situation upon themselves. Supporting any American in need right now shouldn't be a partisan issue, but everything is political with Trump's GOP. Either political or criminal, take your pick.

#1 | Posted by tonyroma at 2020-08-14 08:27 AM | Reply | Newsworthy 1

Feds won't intervene.

Once they steal the Republic this will be leveraged to make the states separate entities in name only.

#2 | Posted by jpw at 2020-08-14 10:40 AM | Reply

You clowns in blue states continued to vote in the modern day robber barons,DEMOCRATS, that looted you and your future while you went joyously on your way. Hell no, I don't owe you anything. Time to end the DEMOCRAT gravy train. Cut services, cut pensions, and cut out the bloat in your state government. Stop whining and tighten your belt. Elections have consequences..... and blue states are about to face hard times, and deserve all it.

#3 | Posted by bumpkin44 at 2020-08-14 11:52 AM | Reply | Funny: 1

--------

#4 | Posted by hamburglar at 2020-08-14 11:56 AM | Reply

#3

Hey you imbecilic moron, ALL states are in trouble because 52 million citizens have become unemployed since March and no longer contribute taxes towards the ongoing expenses of maintaining public safety and the general public good. And since states operate under stupid 'balanced budget' restrictions, during times like these it forces cuts and freezes in the very services needed by people normally productive themselves - leading to an inevitable death spiral ending in meltdowns in numerous financially-based markets (real estate and banking to name just two).

Every state citizen is also a freaking AAMERICAN first and foremost. My passport doesn't say that I'm a Hoosier, it says that I'm an American and so does my federal tax return. The federal government is the only entity that can help the states deal with their lost revenue. And in this case, our dunsel President's ignorance is at the foundation of our woes in allowing covid to devastate our economy unlike those of other nations with far wiser leadership that managed to stop the virus without nuking their economies at the same time.

#5 | Posted by tonyroma at 2020-08-14 12:03 PM | Reply | Newsworthy 2

#3 | POSTED BY BUMPKIN44

Take your government hands off my medicare!

-righties

The GOP base is proof positive there are people too stupid to be trusted with the right to vote.

#6 | Posted by jpw at 2020-08-14 12:12 PM | Reply | Newsworthy 1

Hell no, I don't owe you anything. Time to end the DEMOCRAT gravy train. Cut services, cut pensions, and cut out the bloat in your state government. Stop whining and tighten your belt. Elections have consequences..... and blue states are about to face hard times, and deserve all it.

#3 | POSTED BY BUMPKIN44

There you have folks.

That's the ignorant hate you will face for decades if trumpism is not crushed now and placed on the ash heap of history forever.

#7 | Posted by donnerboy at 2020-08-14 12:17 PM | Reply | Newsworthy 3

Hell no, I don't owe you anything. Time to end the DEMOCRAT gravy train. Cut services, cut pensions, and cut out the bloat in your state government. Stop whining and tighten your belt. Elections have consequences..... and blue states are about to face hard times, and deserve all it.

#3 | POSTED BY BUMPKIN44
Haha what a moron. Guy should be locked up in a mental facility.

#8 | Posted by byrdman at 2020-08-14 12:28 PM | Reply | Newsworthy 2

#3 | POSTED BY BUMPKIN44

Guaranteed this person lives in a red state that gets more than it gives.

#9 | Posted by Derek_Wildstar at 2020-08-14 01:19 PM | Reply | Newsworthy 1

With rock-bottom interest rates, countries that issue debt in their own currencies, such as Britain, the United States and Japan, have a golden opportunity to spend money at little cost. Right now, the U.S. Treasury can issue 30-year bonds on which it pays less than 1.5 percent interest. Democratic and Republican negotiators are apart by about $1 trillion, so that works out to annual interest payments of under $15 billion " less than 0.5 percent of last year's federal budget. The F-35 fighter aircraft program costs more than breaking this gridlock and providing relief to the entire American economy. Furthermore, after accounting for inflation, bondholders will likely be paying the U.S. government for the honor of lending it money.

We have been here before. In 2009, hundreds of distinguished economists, dozens of Republican leaders such as then-Rep. Paul D. Ryan, and influential public interest groups argued that the stimulus bill and Federal Reserve actions would cause hyperinflation, economic collapse and the decline of the dollar. In fact, the opposite happened. The United States chugged along to its longest peacetime recovery on record, the dollar soared, American banks emerged stronger than all the rest, and the U.S. stock market outperformed the world. Undeterred by their record of failure, many of the same voices are at it again, saying that this time all the things they wrongly predicted in 2009 really will happen.

Perhaps. But it also appears likely that we are in a period where inflation will remain subdued. For the next year at least, spending will continue to stay low as people eschew travel, eating out, public entertainment and sports. The broader forces of technology and globalization continue to keep costs down and make it difficult for labor to force wages up. In this kind of world, if a government has the capacity to step in and fill the gap at low cost, it should consider itself blessed. Otto von Bismarck, the great German statesman, was on to something when he purportedly said, "God has a special providence for fools, drunks and the United States of America."

Fareed Zakaria

#10 | Posted by tonyroma at 2020-08-14 02:02 PM | Reply

Which is why the leaders are so anxious to get us back to work.
A bankrupt America will not look good.

#11 | Posted by phesterOBoyle at 2020-08-14 04:22 PM | Reply

Next person that claims Trump is good for the economy gets a dong punch.

#12 | Posted by Tor at 2020-08-14 04:23 PM | Reply | Newsworthy 1

"Next person that claims Trump is good for the economy gets a dong punch.
#12 | POSTED BY TOR"

Any excuse to touch a Real man part?
Sick sombish.

#13 | Posted by phesterOBoyle at 2020-08-14 04:25 PM | Reply

Hell no, I don't owe you anything. Time to end the DEMOCRAT gravy train. Cut services, cut pensions, and cut out the bloat in your state government. Stop whining and tighten your belt. Elections have consequences..... and blue states are about to face hard times, and deserve all it.

#3 | POSTED BY comrade BUMPKIN44

You got one thing right you (R)tarded hilljack, elections do have consequences.
When your boy Orange Adolf loses in November he'll be going to New York State prison (if he doesn't flee to Russia first) for the crimes he committed in that state.

And you'll be snowflaking over that.....

#14 | Posted by a_monson at 2020-08-14 04:43 PM | Reply

Any excuse to touch a Real man part?
#13 | POSTED BY PHESTEROBOYLE
I plan to walk in and yank on Kanye. POSTED BY PHESTEROBOYLE

It's 2020, yank away.

#15 | Posted by GOnoles92 at 2020-08-14 05:01 PM | Reply

ppffftttt... a couple years of not ------- tax dollars on a useless war machine will balance that out in no time.

#16 | Posted by RightisTrite at 2020-08-15 04:16 AM | Reply | Newsworthy 1

Did they add pre-Covid unfunded pension liabilities? Probably not given that the number isn't in the trillions.

#17 | Posted by sitzkrieg at 2020-08-15 03:33 PM | Reply

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