Hot air expended trying to stop recession only fuels political fires

Published: Saturday, July 11, 2009 12:03 a.m. MDT
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Let's stop kidding ourselves. In no contemporary economic crisis — not even those that unfolded on the Republicans' watch — has Congress left the unemployed completely in the lurch. So some sort of spending package — call it stimulus, call it stopgap emergency aid, whatever works — is going to have to be passed.

The unemployment emergency helps feed another crisis Congress is going to be forced to address: the state budget disasters unfolding around the country. So far, 42 states have cut budgets that already had been enacted for fiscal 2009, according to the National Governors Association. More and deeper cuts are expected next year.

Already, states have laid off and furloughed workers — including, in some states, the very workers who process unemployment claims. Generally speaking, states are required to balance their budgets each year, a mandate that forces them to pull money out of the economy through spending reductions and tax hikes, counteracting the federal government's efforts to juice things up. "That is what happened during the Great Depression, we had states working against what the federal government was doing," says Heidi Shierholz, an economist with the Economic Policy Institute.

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With red states and blue, Republican governors and Democrats, all struggling against the same relentless, recession-driven drops in tax revenue, an almost irresistible political coalition for more aid to states eventually will take shape. And with the fast-approaching September deadline for extending some unemployment benefits, there will likely emerge one of those must-pass measures that may or may not be called another stimulus bill.

Any hot air expended trying to stop it serves no purpose but to fuel political fires. Remember, that is the whole point of those now huffing and puffing most heartily. They don't want to figure a way out of this morass; they just want to figure out a way to unseat those now in office.

Marie Cocco's e-mail address is mariecocco@washpost.com.

Recent comments

If government can't help, which seemingly it can't, they should just...

Leave us alone | July 11, 2009 at 11:00 a.m.

We could pull out of this recession by extending the Bush tax cuts...

Economics Major | July 11, 2009 at 9:04 a.m.

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Associated Press

People attend a job fair June 3 in Anaheim, Calif. In the U.S., 6.5 million jobs have been lost since December 2007.

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