Monday, January 3, 2011

Let's try to remember it was Wall Street that blew the hole in state budgets

The attacks on government workers get worse every day. Several newly elected Republican governors, including Wisconsin's Scott Walker and Ohio's John Kasich, clearly want to abrogate public employee contracts.

Dave Johnson recently offered some perspective:
Congress just passed tax cuts for the rich along with a huge cut in the estate tax, Wall Street bonuses are up, corporate profits are the highest ever, the top 1% are taking home a higher percentage of all income, and sales of luxury items are breaking records.

Johnson listed 10 holiday season assaults on government workers, including Michigan's new governor Rick Snyder cutting public sector spending and he execrable George Will arguing against giving California a federal bailouts on pensions.

The blogger naked capitalist reminds us:
But what conveniently lost is….what exactly blew a gaping hole in state and local budgets? Let’s see, a big fall in tax receipts, mainly due to the fall in housing prices and the rise in unemployment, which were both the result of the financial crisis. But no, let’s not assign any blame to the plutocrats or their political operatives, let’s focus on the workers instead.