New Governors, Old Problems
This week started the new administration of around 37 governors. Why anyone would want this job right now is astounding because there isn’t a single one of them walking into a pleasant situation.
Every state is in financial distress. Most governors got elected promising things that there’s almost no way they can sustain. No new taxes; this one should be interesting to see how it goes. No job cuts; how will they be able to stick with that one? Create new jobs; that sounds good, but previous governors didn’t do it so what makes people think the new governors will?
Here’s the reality. Unemployment is high and there’s no real reason to believe it’s going to drop all that much in 2011, if at all. The good paying jobs that required little education are gone and they’re not coming back. Some average paying jobs that required little education are gone and they’re not coming back either. It costs too much for some American businesses to continue making stuff in this country, so they say, as well as handling customer service issues.
As long as unemployment stays high, companies that are actually still manufacturing items here aren’t going to hire more people because there’s less of a market for some of their items. That’s not an opinion by the way; many industry leaders have come out saying that on their own. Specialty stores are already starting to disappear; that’s sad.
There were 157 bank closures in 2010 and at least 145 bank closures in 2009. Both were lower than what had been predicted but those figures are still pretty high. Local banks are the perfect balance to what I see as a corrupt major bank system, but if local banks can’t sustain themselves in many states, that’ll leave fewer choices for consumers, which isn’t a great thing. Smaller banks are more apt to loan money to people in their community, whereas large banks aren’t really lending money these days at all.
Back to the governors. What do we see coming? I see that there will be new taxes; there just has to be. Either that or much higher fees on things we need; take your pick.
There will be a reduction in Medicaid, which means more physicians will stop accepting it as payment and more patients will be forced to go to clinics, which might not be a bad thing if the states have enough people left over to inspect them on a more regular basis.
Money for non-essential services or programs is going to be cut, which means things like museums and parks might close or reduce hours, and services like animal control might be reduced. Of course, fewer government employees means it’ll take longer to get things done, if they get done at all.
Local governments are going to get into the act as well. Where I live the county legislator made a deal with the large city to get all of the county tax revenue; this means all the other localities have to fend for themselves. My property taxes are already set to go up.
As for job creation… well, no one has looked at my plans to spur the economy two years in a row, so they’re not going to look at it now either. I’ll say this, though; plans had better be made and they need to be made to show progress in at least two years. Otherwise, the 2012 election season is going to look really interesting and there could be another drastic political change.
Except for the governors; they’ll still have more time to get it right.