Thursday, October 30, 2008

Governments can lay off too

Often layoffs tend to be confined in private or pseudo-private enterprises. However, when these folks are revoked their employment and paychecks they are no longer contributors to government as assets, but switch to become liabilities as they move into depending on state programs like unemployment, possible food stamps, and potentially other government programs. When these people move from paying into the system to being a drain on the system the budget really comes under duress.

Massachusetts seems to have recognised this effect and moved to lay off 1,000 jobs and slash their budget. I would have to say this is a good recognition and effort, since they were just pitching around the idea to spread their needs onto the taxpayers of other states by asking the Federal Reserve (backstopped by the Treasure [you&me]) for a dole out. Massachusetts may be as close as they come to Socialism, so that beggar they neighboring states attitude fits their policy. So, for them to cut their budget with hat in hand came as a bit of a surprise to me due to the ironic responsibility they are showing that doesn't fit their character.

Let's hope another state in the begging position comes to their senses and learns from the Massachusetts example sooner rather than later. Arnold, I am talking to you.

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