Monday, June 1, 2009
The cat is clean, I am fed, the clothes are in the laundry. Need to clean upstairs.
State and Local Governments: This is where the shock will be in the near to medium term. These folks have been even more profligate than the FedGuv in ramping up their spending. They all want new offices, they all want to serve the downtrodden.
The trouble is, they have all been giving too damn much money to their employees and hiring too damn many people. They have all been sucked into the Federal governments little game of "look, we'll give you money if you play by our rules". They have initiated a gazillion little programs partially paid for by the Fed with the rest paid for by big tax revenues from the real estate boom. Well, looks like those days are gone. The effective governments will clear away the chaff and fluff. The ones doomed to fail will try to keep everything going.
There will be efforts made to increase taxes, but as most states are constrained by tax limitations, this will be difficult. Expect huge increases in "User Fees" for everything.
Education: Same game as state government. The teachers have pretty much overplayed their hand, and the corrupt and inefficient districts are siphoning away dollars to increase administrative overhead.
The schools tried to take on too much. They saw huge gaps in the social welfare of the children coming into their hands. They tried to make it good for those kids with the gaps. What they lost track of is their prime mission of education, becoming instead a poor substitute for parents who failed.
The schools will have to re-orient their mission. They will have to radically reduce their extra-scholastic programs and get down to basics. Class sizes will go up. Programs will vanish.
The higher education system is especially at risk. The ability to turn out spreadsheet commandos does not constitute and education. They will have to redefine themselves in order to survive. I expect to see a resurgence in trade schools and a serious winnowing of the small colleges. They don't provide a good enough education to make a difference.
Oddly enough, I think that liberal arts schools will probably do OK. These are folks who go to learn, not to get their ticket punched. The schools will get lean, but will manage.
Corporations: Corporations equal fascism. What we are looking at now is the hijacking of the state by big business. Taxpayers are being asked to save corporations. If this isn't stopped, and soon, prepare for hell. Always vote against the incumbent.
OK...work calls, and Monday is upon us. Be well.
at 5:35:00 AM