Let me tell you a story. There are three major economies. The stock market economy gets big things done. The real economy is where we live. The government economy handles non-profitable tasks (education, road work, gender studies... Diplomacy).
The government pays the stock market economy to get big things done while taxing the real economy for money. The government is not receiving taxes from the real economy.
While the federal government can print money, they are small compared to State Government bodies. Next year, State governments on down have no money. New York, Illinois, and California will be cutting government salaries. More likely than not, the stock market economy stops loaning money to these States and/or their municipalities.
Once the realization of government financial destruction occurs, the US will be back to normal.
The real economy will recover. The government will not.
Bailouts will only delay the inevitable by a year or two. Unless the government plans to bailout states yearly. Then the whole system crashes with inflation in double digits.
The inflation will happen when Europe increases their rate from negative to 1%.
Don't know where you studied econ; but, must have been somewhere on the Left Coast. There's only one economy--the Tinkerbell economy. You remember the one: "I believe in Fairies!"
I don't pretend to be an economist; but, I am old enough to know (many of) the states have been bankrupt for years--and I haven't seen the salaries or pensions go down.
Yet the pot holes grow. The Senior Centers close. The insane asylums released their patients. The police departments are smaller. Fire Stations close. Medicaid pays less to providers.
All we see is the inevitable becoming worse once they’ve gone through all other options. New York City was bankrupt in the 1970s, and it will be bankrupt again.
You are experiencing recency bias.
Let me tell you a story. There are three major economies. The stock market economy gets big things done. The real economy is where we live. The government economy handles non-profitable tasks (education, road work, gender studies... Diplomacy).
The government pays the stock market economy to get big things done while taxing the real economy for money. The government is not receiving taxes from the real economy.
While the federal government can print money, they are small compared to State Government bodies. Next year, State governments on down have no money. New York, Illinois, and California will be cutting government salaries. More likely than not, the stock market economy stops loaning money to these States and/or their municipalities.
Once the realization of government financial destruction occurs, the US will be back to normal.
The real economy will recover. The government will not.
I hope your analysis is correct.
If the GOP teams up with the Democrats and bails out the Blue States, your scenario probably can't happen.
Bailouts will only delay the inevitable by a year or two. Unless the government plans to bailout states yearly. Then the whole system crashes with inflation in double digits.
The inflation will happen when Europe increases their rate from negative to 1%.
Don't know where you studied econ; but, must have been somewhere on the Left Coast. There's only one economy--the Tinkerbell economy. You remember the one: "I believe in Fairies!"
I don't pretend to be an economist; but, I am old enough to know (many of) the states have been bankrupt for years--and I haven't seen the salaries or pensions go down.
Yet the pot holes grow. The Senior Centers close. The insane asylums released their patients. The police departments are smaller. Fire Stations close. Medicaid pays less to providers.
All we see is the inevitable becoming worse once they’ve gone through all other options. New York City was bankrupt in the 1970s, and it will be bankrupt again.
And Kids are pretty great. They are taking this all way better than many on the left.