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alstry (35.42)

THE WORST FINANCIAL DAYS EVER???

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December 22, 2009 – Comments (4)

Over the weekend Arizona state lawmakers approved a budget for fiscal year 2010.  Governor Jan Brewer said that these are, "the worst financial days ever." Arizona still faces a $1.5 billion dollar deficit this year, and a projected $3.4 billion dollar shortfall next fiscal year. The bill contained $193 million in funding cuts to reduce state services and state salaries. "We face a state fiscal crisis of unparalleled dimension, one that is going to sweep over every single person in this room, as well as every business, every family, every Arizonan," Brewer said.

Can anyone explain how these are the worst financial days ever yet we are coming out of only a recession?

It appears that much of America, and the world for that matter, are simply functioning based on an ability to borrow without much regard to ability to pay back......interesting times indeed.

4 Comments – Post Your Own

#1) On December 22, 2009 at 1:20 PM, davejh23 (< 20) wrote:

"Arizona still faces a $1.5 billion dollar deficit this year, and a projected $3.4 billion dollar shortfall next fiscal year. The bill contained $193 million in funding cuts to reduce state services and state salaries."

Only $193 million in cuts?  It's going to "sweep over...every Arizonan" because they must be planning on tax hikes to plug the gaping hole that remains in their budget...I doubt they even have the ability to issue billions in new debt.  Doubling property taxes and sales tax rates probably wouldn't even solve their problems.  Does Arizona have a state income tax?  Too bad massive tax hikes would destroy their state economy.  I'd expect huge cuts and gov't job losses ahead.

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#2) On December 22, 2009 at 1:31 PM, miteycasey (30.40) wrote:

Can anyone explain how these are the worst financial days ever yet we are coming out of only a recession?

The Governor didn't live through the 20's/30's.

He's looking to make headlines. Enough said.

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#3) On December 22, 2009 at 1:50 PM, alstry (35.42) wrote:

AMERICA'S CASHFLOW PROBLEM TODAY IS MUCH WORSE THAN THE GREAT DEPRESSION.....MUCH WORSE!!!!! 

I believe during The Great Depression America had a budget surplus.  This year we are on track to run a $2 Trillion dollar deficit and revenues are continuing to contract and expenses rise.

In order to make up that GAP we would have to tax the top 10% income earners including family members $60,000 per person........the problem is that the top 10% don't earn that much.

It is amazing when I raise the deficit problem and put the number in perspective......every single person that has thought about it immediately becomes deer in the headlights and simply wants to avoid the issue.  It becomes even more acute when you explain you can't print your way out of an insolvency issue.

During The Great  Depression.......America took responsibility for its condition and grew its way out of our problem.....now we have the government borrow an unsustainable amount of money to pretend we have an economy until one day we can't pretend anymore.......

Pretending by borrowing money is the only reason 40,000,000 people receive food stamps and are not standing in food lines.

When that day ARRIVES where we can't borrow anymore is anyone's guess.....

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#4) On December 22, 2009 at 2:33 PM, davejh23 (< 20) wrote:

"Pretending by borrowing money is the only reason 40,000,000 people receive food stamps and are not standing in food lines."

It's amazing how many deny any similarities between our current economic problems and the Great Depression.  If it doesn't directly affect them and they don't see it in their communities, it must not exist.  Add those that are dependant on gov't welfare programs for their support to broad unemployement numbers, and our current unemployment situation looks worse than overall unemployment during the great depression...probably closer to the 35% non-farm unemployment seen during the Depression.  Without the welfare programs (including foodstamps) we have today that didn't exist during the Depression, people would see the kind of despair that characterized the Depression.  When states have budget shortfalls that amount to thousands per household, it's not a minor problem.  When most industries are seeing massive declines in revenues and many are only remaining profitable through massive cost cutting, it doesn't feel like the end of a recession.

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