Recession Engulfs

States are cutting budgets on programs for the poor and vulnerable. The result is more misery.

The Obama stimulus would only account for about 40% of this missing money. Therefore some states are raising taxes. In a time of reduced employment, and stretched budgets to accommodate debt, hell why not raise taxes.

In Buddhism we call this the suffering of suffering. This is where misery is exacerbated by more misery. You break your arm and on the way home from the hospital, you trip and need stitches because you couldn't break the fall with your broken arm.

There is something here that riles the blood. Here we have the result of Republican hatred for the poor and middle class. They are always keen on ending entitlements, and now the work to undo entitlements is manifesting in the Bush inspired recession.

Center on Budget and Policy Priorities (CBPP): An Update on State Budget Cuts

The budget shortfalls are also leading states to enact or consider tax increases or other revenue measures. So far, at least 14 states have begun closing their budget shortfalls by increasing taxes or otherwise raising new revenue. Like budget cuts, tax increases remove demand from the economy, by reducing the amount of money people have to spend. But tax increases can be less detrimental to state economies than budget cuts because some of the tax increases result in reduced saving rather than reduced consumption.

NYT: States Slashing Social Programs for Vulnerable

...programs for vulnerable groups have been cut in at least 34 states...

“There’s no question that we’re getting short-term savings that will result in greater long-term human and financial costs..."

Winona Conn, 75, who uses a wheelchair because of a paralyzed leg, has been on the waiting list for home aid for a year.