Tuesday, May 26, 2020

Unsanitized: A Few Weeks to Stop a Depression — David Dayan

We’re back from a holiday weekend but the Senate is still out of session, having left Washington without acting on more economic aid. The official line from Republicans is that it’s time to see how previous efforts work before considering more. And anyway, the economy’s opening back up, maybe it won’t need federal support.
This is a dangerously wrong attitude, especially because of the realities of the political calendar. Decisions will be made in the next few weeks that will put the nation on a direct path to depression without Congressional intervention.
That’s because the fiscal year for many states begins on July 1, and budgets must be adopted between now and then. California has a June 15 deadline for how to fill its giant budget hole, which could be as much as $54 billion. Other states scheduled to adopt a budget within this period include Colorado, Delaware, Georgia, Iowa, Kansas, Louisiana, Maine, Massachusetts, Michigan, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Vermont, and Wisconsin....
The folks in charge don't seem to appreciate systemic risk.

American Prospect

No comments: