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alstry (36.32)

American wages in a DEPRESSION

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July 20, 2009 – Comments (4)

Airline workers

Auto Workers

Architects

Archeologists

Aethiests

Agnostics

Anglicans

And this from the WSJ:

The Boston Globe's largest union on Monday approved a package of wage and benefits cuts to save $10 million a year at the newspaper, ending a contentious labor battle that began nearly four months ago with a threat to shut down New England's largest daily.

The deal, passed by a vote of 366 to 179, removes a significant obstacle to efforts by Globe owner New York Times Co. to sell the paper.

Under the terms of the contract ratified Monday, the nearly 700 members of the Boston Newspaper Guild will take a 5.94% pay cut, along with a number of other concessions, including unpaid furloughs, a pension freeze and the elimination of job guarantees for many members.

Yesterday we saw pilots for Midwest taking an almost 50% paycut. 

Instead of firing 10% of the workforce, cut the wages 20% for 100% of the workforce......you save even more.  We are seeing it happen everywhere now....Cities, Counties, States, Hospitals, Colleges, Universities, Manufacturing, Media, Malls....you name it, if you have a job, your wages are likely going to get slashed....

When wages get slashed, taxes paid goes down evaporating tax revenues to government even further......the downward slope keeps getting steeper.  I was talking to a local national brand motorcycle dealer today, the unit sales goal was 65 for July, only on track to do 16........guess what is happening to wages at that dealership?

No need to prepare...its now here.

 

4 Comments – Post Your Own

#1) On July 20, 2009 at 10:48 PM, alstry (36.32) wrote:

As wages and  tax receipts keep declining.....imagine what happens when the criminals find out about this.....

Low-priority crimes like breaking and entering might not be prosecuted and the conviction rates will continue to decline if the proposed budget for the Wayne County Prosecutor’s Office is approved, Prosecutor Kym Worthy told commissioners this morning.

“We can’t even cover our courtrooms anymore,” Worthy said in vehemently disagreeing with the $28-million general fund budget proposed for the prosecutor’s office by Wayne County Executive Robert Ficano. “At some point, if the budget continues to be cut, we’re going to have to start making decisions about what crimes we prosecute.”
http://freep.com/article/20090716/NEWS02/90716048/Worthy--Cuts-hamper-crime-fight

Yup...Prepare is here....Zombulator on a tear

THIS IS A COUNTY ISSUE...NOT STATE OF CITY WHICH IS ALSO IN THE SAME POSITION

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#2) On July 20, 2009 at 11:01 PM, alstry (36.32) wrote:

KISS  PENSIONS GOODBYE!!!!!!!!!!!!!!!!!!!!!!!!

A complete meltdown of budgets for the State of California and many Northern California Counties pits public employees and their lofty lifetime retirements against all other interests for policy makers.   There are hard choices to come  as the state of California is grappling with an estimated $26 to 30 billion current budget deficit and an unfunded pension liability estimated to be in excess of $400 billion.    For Marin County, with only 100,000 households, estimates are their less 5000 current and retired public employees that have an unfunded pension liability against the County in excess of $1 billion.   Public employee union pensions are off balance sheet liabilities that are guaranteed by State, County and City taxpayers and  these liabilities continue to grow as public employees retire in droves.    These lifetime payouts to public employee  must be paid before any other expenditures only after education funding and debtholders are paid, due to the intense and successful lobbying by public employee union leaders having taxpayers "guarantee" their pensions...for life.  The end result pits a favored class:  public employees, against the needs of the public at large and tired taxpayers.  

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#3) On July 20, 2009 at 11:28 PM, TimothyVR (< 20) wrote:

Salaries are being cut in order to save jobs, and who will dare to complain? More responsibility and a heavier work load is given to employees withou any compensation - and that's the way it goes. The other option is unemployment.

California is always the laboratory, but they are never alone. It may happen on a greater scale and earlier there but much of the rest of the country will follow.

The pressure will be huge on the public employees with guaranteed pensions. Their unions will have to answer for them.

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#4) On July 20, 2009 at 11:42 PM, alstry (36.32) wrote:

CALIFORNIA BALANCED BUDGET A SHAM!!!!!!!!!

Like usual, you get from Alstrynomics first.  Yes, California balanced its $26 Billion dollar deficit with some creative accounting and serious cuts......BUT.....

the JUNE report was delayed......get ready to learn that the projected deficit will be over $30 Trillion dollars due to declining revenues.....but we can put that on hold for a while.

You could also learn that for the first time in the State's history, cash in was less than cash out without factoring accruals.

Soon....the world will be wondering, why was it just Alstry who understood Alstrynomics just a few month ago.

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