"... (US) States face budget holes totaling $134 billion over the next three years, according to the governors, explaining that tax collections keep declining as Medicaid costs soar. High unemployment persists. States cut 18,000 jobs in January alone and more job losses are anticipated. Because states are required to balance their budgets, shortfalls will be made up by raising taxes or fees or cutting services..."
Read more
Comment: And from here we can go on with no end in sight. The money supply grows, the economy continues to shrink. More money is injected into the system. More bailouts, more stimulus programs. In the end, we'll have even more government debt, more inflation, more unemployment, more misallocation and an economy that gets weaker with each round of these silly policies.
No comments:
Post a Comment