By Jeff Davis. When the housing bubble finally popped, the resulting minority subprime mortgage crisis cost banks an estimated 1.5 trillion dollars. People like Barack Obama had filed lawsuits on behalf of ACORN to force banks to make loans to totally unqualified Blacks and Latinos. Whenever government forces banks or industry to do something (like loan money to minorities or hire a certain percentage of minorities), there’s a great danger of wholesale disaster.
Having destroyed the private sector and slashed tax revenue thereby, now the so-called public sector is starting to get hit with mass lay offs. Democrats as well as Republicans are now standing in that line watching their 99 weeks of benefits dwindle.
Reuters reports: “U.S., state and local governments cut thousands of jobs in June, pushing their payrolls down to the lowest in five years, according to Labor Department data released on Friday, and analysts do not expect the losses to end any time soon. Local governments shed 18,000 jobs and state governments cut 7,000 in June. The level of local government employment — 14.143 million employees — is the lowest since June 2006. State government employment is the lowest since August 2006.”
“The National League of Cities, which represents civic officials, foresees further job cuts for at least the next 18 months. In a statement commenting on the Labor Department report, the group voiced concerns that continued public job losses will also dampen job growth in the private sector.”
True. Unemployed government workers can’t buy the goods and services of the private sector. They’ll also start defaulting on their mortgages.
Reuters goes on: “Cuts have been particularly deep in education. In June alone, local governments shed 12,600 education positions. Since last August, when concerns about mass layoffs at public schools spurred Congress to send states millions of dollars, local education has lost 124,300 jobs.”
“The housing bust, financial crisis and recession devastated state and local tax revenues. For more than three years, [mostly blue] states have cut spending, hiked taxes, borrowed and turned to the federal government for help in keeping their budgets balanced. Now, with few places left to find savings, they are rolling back funds for cities, counties and school districts.”
Let’s look at what they are not rolling back: welfare for blacks, welfare for illegal aliens, state Medicaid for illegal aliens, basically every damned thing for blacks and illegal aliens is preserved. Some cities, as we have reported before in this column, are cutting back on police and fire services.
Here is a suggestion for the states: Pass more laws like Arizona’s, ignore federal court orders and interference by the Justice Department, and run the illegals out of your state. Then, take the jobs and housing thus vacated and give those jobs and that housing to Americans.
Another suggestion: Dump your anti-business regulations, slash taxes, and make it feasible for people to set up small businesses again without the state and local governments strangling them at birth. California would benefit the most from this advice, but they are likely too far gone with their non-White majority and crazy socialist legislature to do anything rational.
