February 6, 2011. “If we permit public-sector workers to be scapegoated for state and city budget crises, we all stand to lose”

Richard Wolff and Max Fraad Wolff

(January 28, 2011)

A national campaign is now fully launched to make local public-sector employees pick up a major share of the costs of economic crisis. Years of rising spending and falling revenue have carved a path of destruction through federal, state and local budgets. Deficits and debts have mounted eroding taxpayer support for government spending in general, and for public employees particularly. In response to deep economic pains in middle-class communities, major efforts are under way, from California to Maine, to balance budgets through major cuts in services, wages, benefits and employment.

Federal, state and local governments are staggering from reduced tax revenues because of unemployment, reduced production, lower investment and the housing collapse. Washington borrowed huge sums from foreign investors, domestic big business and the rich. These funds went to bailout select businesses and to help (partially and temporarily) broken state and local government budgets. Because Democrats and Republicans agreed last December not to increase income, estate and capital gains taxes, broken state and local budgets face declining federal support. This is driving governors, mayors and state legislatures to raise taxes and/or to slash payrolls and programmes.

Of course, some cutting and tax increases are required. The real social decisions involve what to cut, how much, for whom, and whose taxes to increase.

Read more at guardian.co.uk