Riverside County Budget ax

[scaredyclassic]

how do people maintain confidence in the face of this. if the freaking govt, the supposedly safe place, is cutting deeply, how does this bode for the rest of it all? i would think this would send a signal to people that it is very risky to take on long term debt

[Coronita]

[quote=CA renter]Other govt agencies in SD County have been told to cut a certain percentage from every department.

This is not over. Not by a long shot. Just wait until govt employees take a pay cut across the board (which I think is inevitable). They’ve been taking cuts here and there, but I believe they are going to have a more sweeping cut.

Those who think govt workers are parasites are going to get the shock of their lives. These workers are the ones who can hold up the economy when the private sector is weak. They place a floor under the economy during downturns. Take them out of the picture/weaken unions, and there is no more floor.[/quote]

I don’t think govt workers are parasites imho..However, these cuts were unavoidable…

I recall that back a few years ago on this forum, about the time when the private sector was really crapping out, that there were several folks expressing how lucky they felt to be in the public sector (education/government agencies etc) when they don’t have to deal with all the fallout of a poor economy. However, I recall a lot of us said don’t be so sure about that, because we’re all integrated. Well, looks like that’s the case. This fallout from the public sector was inevitable. Since it’s always run on a budget, and since our government’s budgets usually negative even in good times, cuts are bound to be made…If there is any lesson to be learned it’s that it doesn’t matter if you work in the public or private sector..Unless you’re a CEO/Leader/Government official, you are the one going to get hit. Is it really different that our elected officials/staff get raises/increases in pensions from a CEO and exec team aty losing companies getting golden parachutes? Nope….

I would, however argue, that public sector/government workers are a lagging indicator. Public sectors are probably the last to get get undone and the last to recover are elected officials and recover.

[Coronita]

[quote=CA renter]Other govt agencies in SD County have been told to cut a certain percentage from every department.

This is not over. Not by a long shot. Just wait until govt employees take a pay cut across the board (which I think is inevitable). They’ve been taking cuts here and there, but I believe they are going to have a more sweeping cut.

Those who think govt workers are parasites are going to get the shock of their lives. These workers are the ones who can hold up the economy when the private sector is weak. They place a floor under the economy during downturns. Take them out of the picture/weaken unions, and there is no more floor.[/quote]

I don’t think govt workers are parasites imho..However, these cuts were unavoidable…

I recall that back a few years ago on this forum, about the time when the private sector was really crapping out, that there were several folks expressing how lucky they felt to be in the public sector (education/government agencies etc) when they don’t have to deal with all the fallout of a poor economy. However, I recall a lot of us said don’t be so sure about that, because we’re all integrated. Well, looks like that’s the case. This fallout from the public sector was inevitable. Since it’s always run on a budget, and since our government’s budgets usually negative even in good times, cuts are bound to be made…If there is any lesson to be learned it’s that it doesn’t matter if you work in the public or private sector..Unless you’re a CEO/Leader/Government official, you are the one going to get hit. Is it really different that our elected officials/staff get raises/increases in pensions from a CEO and exec team aty losing companies getting golden parachutes? Nope….

I would, however argue, that public sector/government workers are a lagging indicator. Public sectors are probably the last to get get undone and the last to recover are elected officials and recover.

[Coronita]

[quote=CA renter]Other govt agencies in SD County have been told to cut a certain percentage from every department.

This is not over. Not by a long shot. Just wait until govt employees take a pay cut across the board (which I think is inevitable). They’ve been taking cuts here and there, but I believe they are going to have a more sweeping cut.

Those who think govt workers are parasites are going to get the shock of their lives. These workers are the ones who can hold up the economy when the private sector is weak. They place a floor under the economy during downturns. Take them out of the picture/weaken unions, and there is no more floor.[/quote]

I don’t think govt workers are parasites imho..However, these cuts were unavoidable…

I recall that back a few years ago on this forum, about the time when the private sector was really crapping out, that there were several folks expressing how lucky they felt to be in the public sector (education/government agencies etc) when they don’t have to deal with all the fallout of a poor economy. However, I recall a lot of us said don’t be so sure about that, because we’re all integrated. Well, looks like that’s the case. This fallout from the public sector was inevitable. Since it’s always run on a budget, and since our government’s budgets usually negative even in good times, cuts are bound to be made…If there is any lesson to be learned it’s that it doesn’t matter if you work in the public or private sector..Unless you’re a CEO/Leader/Government official, you are the one going to get hit. Is it really different that our elected officials/staff get raises/increases in pensions from a CEO and exec team aty losing companies getting golden parachutes? Nope….

I would, however argue, that public sector/government workers are a lagging indicator. Public sectors are probably the last to get get undone and the last to recover are elected officials and recover.

[Coronita]

[quote=CA renter]Other govt agencies in SD County have been told to cut a certain percentage from every department.

This is not over. Not by a long shot. Just wait until govt employees take a pay cut across the board (which I think is inevitable). They’ve been taking cuts here and there, but I believe they are going to have a more sweeping cut.

Those who think govt workers are parasites are going to get the shock of their lives. These workers are the ones who can hold up the economy when the private sector is weak. They place a floor under the economy during downturns. Take them out of the picture/weaken unions, and there is no more floor.[/quote]

I don’t think govt workers are parasites imho..However, these cuts were unavoidable…

I recall that back a few years ago on this forum, about the time when the private sector was really crapping out, that there were several folks expressing how lucky they felt to be in the public sector (education/government agencies etc) when they don’t have to deal with all the fallout of a poor economy. However, I recall a lot of us said don’t be so sure about that, because we’re all integrated. Well, looks like that’s the case. This fallout from the public sector was inevitable. Since it’s always run on a budget, and since our government’s budgets usually negative even in good times, cuts are bound to be made…If there is any lesson to be learned it’s that it doesn’t matter if you work in the public or private sector..Unless you’re a CEO/Leader/Government official, you are the one going to get hit. Is it really different that our elected officials/staff get raises/increases in pensions from a CEO and exec team aty losing companies getting golden parachutes? Nope….

I would, however argue, that public sector/government workers are a lagging indicator. Public sectors are probably the last to get get undone and the last to recover are elected officials and recover.

[Coronita]

[quote=CA renter]Other govt agencies in SD County have been told to cut a certain percentage from every department.

This is not over. Not by a long shot. Just wait until govt employees take a pay cut across the board (which I think is inevitable). They’ve been taking cuts here and there, but I believe they are going to have a more sweeping cut.

Those who think govt workers are parasites are going to get the shock of their lives. These workers are the ones who can hold up the economy when the private sector is weak. They place a floor under the economy during downturns. Take them out of the picture/weaken unions, and there is no more floor.[/quote]

I don’t think govt workers are parasites imho..However, these cuts were unavoidable…

I recall that back a few years ago on this forum, about the time when the private sector was really crapping out, that there were several folks expressing how lucky they felt to be in the public sector (education/government agencies etc) when they don’t have to deal with all the fallout of a poor economy. However, I recall a lot of us said don’t be so sure about that, because we’re all integrated. Well, looks like that’s the case. This fallout from the public sector was inevitable. Since it’s always run on a budget, and since our government’s budgets usually negative even in good times, cuts are bound to be made…If there is any lesson to be learned it’s that it doesn’t matter if you work in the public or private sector..Unless you’re a CEO/Leader/Government official, you are the one going to get hit. Is it really different that our elected officials/staff get raises/increases in pensions from a CEO and exec team aty losing companies getting golden parachutes? Nope….

I would, however argue, that public sector/government workers are a lagging indicator. Public sectors are probably the last to get get undone and the last to recover are elected officials and recover.

[Coronita]

[quote=FormerOwner]We’re lucky that the FEDERAL government isn’t cutting back the way the local governments are. Military, defense contractors, Border Patrol, Drug Enforcement, FBI jobs, etc. are a SIGNIFICANT part of the SD economy and a lot of those people make fairly high salaries + a pension. That is a lot of what is keeping SD afloat economically. If the Federal government ever gets its budget under control, SD will be VERY hard hit.[/quote]

Um, defense IS getting cut.. Just ask any folks at B.A.E. or SAIC. I think what you need to be thankful of is some of the other high tech unrelated to government work which is (trying) to do better. Private sector will recover before public sector or businesses that depend heavily on the u.s. government.

[Coronita]

[quote=FormerOwner]We’re lucky that the FEDERAL government isn’t cutting back the way the local governments are. Military, defense contractors, Border Patrol, Drug Enforcement, FBI jobs, etc. are a SIGNIFICANT part of the SD economy and a lot of those people make fairly high salaries + a pension. That is a lot of what is keeping SD afloat economically. If the Federal government ever gets its budget under control, SD will be VERY hard hit.[/quote]

Um, defense IS getting cut.. Just ask any folks at B.A.E. or SAIC. I think what you need to be thankful of is some of the other high tech unrelated to government work which is (trying) to do better. Private sector will recover before public sector or businesses that depend heavily on the u.s. government.

[Coronita]

[quote=FormerOwner]We’re lucky that the FEDERAL government isn’t cutting back the way the local governments are. Military, defense contractors, Border Patrol, Drug Enforcement, FBI jobs, etc. are a SIGNIFICANT part of the SD economy and a lot of those people make fairly high salaries + a pension. That is a lot of what is keeping SD afloat economically. If the Federal government ever gets its budget under control, SD will be VERY hard hit.[/quote]

Um, defense IS getting cut.. Just ask any folks at B.A.E. or SAIC. I think what you need to be thankful of is some of the other high tech unrelated to government work which is (trying) to do better. Private sector will recover before public sector or businesses that depend heavily on the u.s. government.

[Coronita]

[quote=FormerOwner]We’re lucky that the FEDERAL government isn’t cutting back the way the local governments are. Military, defense contractors, Border Patrol, Drug Enforcement, FBI jobs, etc. are a SIGNIFICANT part of the SD economy and a lot of those people make fairly high salaries + a pension. That is a lot of what is keeping SD afloat economically. If the Federal government ever gets its budget under control, SD will be VERY hard hit.[/quote]

Um, defense IS getting cut.. Just ask any folks at B.A.E. or SAIC. I think what you need to be thankful of is some of the other high tech unrelated to government work which is (trying) to do better. Private sector will recover before public sector or businesses that depend heavily on the u.s. government.

[Coronita]

[quote=FormerOwner]We’re lucky that the FEDERAL government isn’t cutting back the way the local governments are. Military, defense contractors, Border Patrol, Drug Enforcement, FBI jobs, etc. are a SIGNIFICANT part of the SD economy and a lot of those people make fairly high salaries + a pension. That is a lot of what is keeping SD afloat economically. If the Federal government ever gets its budget under control, SD will be VERY hard hit.[/quote]

Um, defense IS getting cut.. Just ask any folks at B.A.E. or SAIC. I think what you need to be thankful of is some of the other high tech unrelated to government work which is (trying) to do better. Private sector will recover before public sector or businesses that depend heavily on the u.s. government.

[CA renter]

Flu,

Agree very much with what you’ve posted. I was also saying years ago that the public sector would not come out of this unscathed.

While I’d agree that the public sector lags, I do think this time is different in the sense that we might see wave after wave, going back and forth between a weaker private sector/stronger public sector (then inverting again)…all the way down. As a long-term deflationist (who does also see the inflationist’s side), I think this period of time is an inflection point in a macro-cycle (decades-long moves), so things will be very severe and protracted, IMHO.

[CA renter]

Flu,

Agree very much with what you’ve posted. I was also saying years ago that the public sector would not come out of this unscathed.

While I’d agree that the public sector lags, I do think this time is different in the sense that we might see wave after wave, going back and forth between a weaker private sector/stronger public sector (then inverting again)…all the way down. As a long-term deflationist (who does also see the inflationist’s side), I think this period of time is an inflection point in a macro-cycle (decades-long moves), so things will be very severe and protracted, IMHO.

[CA renter]

Flu,

Agree very much with what you’ve posted. I was also saying years ago that the public sector would not come out of this unscathed.

While I’d agree that the public sector lags, I do think this time is different in the sense that we might see wave after wave, going back and forth between a weaker private sector/stronger public sector (then inverting again)…all the way down. As a long-term deflationist (who does also see the inflationist’s side), I think this period of time is an inflection point in a macro-cycle (decades-long moves), so things will be very severe and protracted, IMHO.

[CA renter]

Flu,

Agree very much with what you’ve posted. I was also saying years ago that the public sector would not come out of this unscathed.

While I’d agree that the public sector lags, I do think this time is different in the sense that we might see wave after wave, going back and forth between a weaker private sector/stronger public sector (then inverting again)…all the way down. As a long-term deflationist (who does also see the inflationist’s side), I think this period of time is an inflection point in a macro-cycle (decades-long moves), so things will be very severe and protracted, IMHO.

[Author]

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