agip wrote:
very doubtful that states would cut jobs...they don't really do that in a downturn. Didn't happen even in the financial crisis.
services can surely be cut though.
The current situation is about ten times worse than the 2008 financial crisis.
We crept up to 10% gradually over several months then.
We're at 14.7% and that doesn't count the people that aren't applying for jobs since there are none to apply for. It's more like 25% out of work that want to work.
States can't borrow money so where do they get it from when tax withholdings shrink by a lot?
And services are pretty important.
One of the services is unemployment benefits. Those payments to out of work people might stop.
Another is medicaid. Healthcare will be cut off to poor people.
Trump denied the request to allow open enrollment to Obamacare to occur at this time, so people can't sign up for that.
The Republicans are doing everything they can to screw over poorer people.
Trump wants a payroll tax cut.
Who does that help? People with jobs, not the people out of work.
Back to state jobs. Yes they can be cut if there isn't money to make payroll.
Or they can work without pay.
But states will have to make decisions going into the fall if the federal government doesn't help.
I'm sure they will pass the funding for states. They'll just have to play their game first and wait until things start to crack.
Then both sides will try to shove pet projects into the bill and fight over that.