
So why are state employees immune?
I read yesterday’s Flashreport with all of the stories in the mainstream media about laying off, and furloughing, state employees, and the negative impact that is having on state employee morale.
But look what is happening in the private sector. Thousands of private sector workers are losing their job, which is having a negative effect on state income and sales tax revenue, and that drop in revenue is resulting in state deficits. These deficits leave the state with the options of cutting spending, raising taxes, or both. Raising taxes will reduce private sector spending, costing more private sector jobs, further reducing income and sales tax revenues, and quite frankly, reducing the effectiveness that any tax increase may have toward increasing state revenue. Quite frankly, raising taxes will make the short term revenue problems worse.
Cutting spending will cost government jobs, for sure, but lots of people are losing their jobs right now. Government workers, and government worker unions, think that somehow they ought to be immune from these economic ups and downs. They always want more spending when revenues are up, and they never want to cut… Read More