Tuesday, March 24, 2009

What to do, what to do

On the BurkaBlog website, there is an article written by a one paulburka about the $800 million dollar deficit Texas is going to be stuck with in unemployment claims. The article can be found here. In the article, the author wrestles with the advantages and disadvantages of accepting the federal stimulus money, $555 million, and ways to deal with the unemployment dilemma. There are strings attached, however, that force Texas to make changes that limit fraud and other types of misuse of funds to qualify for the money, which by the way, has to be paid back. The author goes back and forth and lands on the decision to take the money, and then proposes a solution himself, which I'm not going to describe here, but which I found very appealing. If the money is not taken, then businesses will carry the burden of financing this in the form of new taxes! So, as the decision looks right now, we either take the money and make the changes, or we tax the hell out of our businesses so that they can tax the people and lay off employees to keep profits high.
Honestly I don't think that taking the federal stimulus money is a good idea at all. The economy is in a recession, duh, and all our government has come up with is throwing money at the problem, and a ton of it. If Texas takes this money, it still will be $50 million dollars short of the intended $800 million, so businesses are already going to have a tax levied on them anyway. You'd think that by now, the brains of this country would have come up with something better than printing up cash and devaluing the currency! But that's beside the point for this exercise. What it boils down to in the end is that Texas is going to HAVE to find this money somewhere, and in a starving economy, it's going to be slim pickings. Eventually Perry will take the money, even though he says he doesn't care to, and the necessary taxes will be applied to raise the rest of the capital.
It's so funny to me that the state can raise more than enough money to rebuild the Governors Mansion, but when something like this occurs, they are absolutely clueless on what to do. It's also unfortunate that recessions are built into the economic system, and that this is never brought to light! Would we have these problems if people were more educated about purchasing decisions, or if lenders were responsible? What if people were patient and saved their money for emergencies instead of fighting credit cards? Would it even matter if people did these things?
Once again, I'm sorry that my opinion isn't even a drop in the water. No matter what I think, until I'm in a position to do something, my hands are tied. My greatest fear at this point in time is for those of us who can't even find a job. For those of us who don't even qualify for unemployment benefits. What do we do, when those with degrees and experience can't even find work?

On a side note, the unofficial debt for the U.S. is over $11 trillion dollars, while the unemployment rate is at 8.5%. The actual numbers, based on many sources and tons of research on my part and others, is around 15%. The national debt is impossible to calculate right now. Thought I'd bring it up, seeing as we are still in Iraq...

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