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Ben,
For a permanent punch in the gut (and in the wallet) Gov.
Schwarzeneggar laid off 10,000 full-time state employees here and cut
back on the work-hours/week of many tens of thousands more, to make
them ineligible for perks like sick leave, vacation pay, retirement
contributions, etc. On Friday, the governmental employees labor union sued
the State of California. LOL
This, of course, will have a domino effect that will only
snowball. (Forgive the mixed metaphor ![]() .)
More unemployment means less consumer spending which means more business
cutbacks on both employment & expansion, which means more
liquidity contractions which causes more mortgage defaults which will
result in more bank failures, all of which results in fewer state tax
revenues &, coming full circle, will result in yet more
government & private sector workers laid off.
Jerry R. ![]() |