- Sep 12, 2012
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IMO, we are headed for a world of hurt. Let's look at public school funding. I think we are going to see unprecendated cuts to education. States were hurting before the COVID-19 epidemic, and this has just pushed those states over the edge. I live in NJ. We have one of the highest tax rates in the country. Much of it is due to school funding. Increasing taxes will only infuriate the populace. It's also a good way to find oneself out of office. I see HUGE cuts to public education. What about state and community colleges? Are we going to see tuition increases? Funding is going to be a hot topic for 2020/21 most definitely.
How long do you you think our high unemployment numbers will last? Even when we start to ease into normal life are businesses going to pick up the pieces? IMO, that answer is going to be no. I think this is the new norm for a long while. Many local businesses are going to shut their doors forever. People are going to be out of work for a very long time. I've talked with a few friends who own small businesses. and they've all told me that they are in real financial distress. Business is down in my area. We are a shore town that relies heavily on tourist dollars. This year will probably be a bust. Devasting financial loss. I expect to see a repeat of the financial disaster of 2006-09. People going bankrupt. Homes lost. Jobs never recovered.
State pensions are going to be another issue. Many states were having difficulty supporting pensions before this pandemic. I know in NJ it's been a sore topic for many lawmakers stating that we need to revise the system. I know that we were at 70% funding. That is going to drastically drop even further. With more state workers retiring, financial issues relating to this pandemic, severe issues surrounding pensions will crop up. For example, France is currently having HUGE pension crisis. My cousin who is a retired teacher in France saw a $300 monthly reduction in her pension payout. This can play out in the states unless we find other sources of state revenue.
Many Americans are blowing thru their savings. That's if they even have an emergency fund to begin with. What's next? Dipping into your 401k because you're desperate for cash. I know a few who had to resort to this during the 2006-09 recession. What's really troubling is this is all speculative. We don't know what will happen in the fall with this virus. The possibility of COVID-19's possible resurgence in the fall/winter is very real. The second/third wave could be even more worse. IMO, most Americans wouldn't be able to take another month or two of social distancing and staying inside. Most couldn't afford to not work. Thoughts?
How long do you you think our high unemployment numbers will last? Even when we start to ease into normal life are businesses going to pick up the pieces? IMO, that answer is going to be no. I think this is the new norm for a long while. Many local businesses are going to shut their doors forever. People are going to be out of work for a very long time. I've talked with a few friends who own small businesses. and they've all told me that they are in real financial distress. Business is down in my area. We are a shore town that relies heavily on tourist dollars. This year will probably be a bust. Devasting financial loss. I expect to see a repeat of the financial disaster of 2006-09. People going bankrupt. Homes lost. Jobs never recovered.
State pensions are going to be another issue. Many states were having difficulty supporting pensions before this pandemic. I know in NJ it's been a sore topic for many lawmakers stating that we need to revise the system. I know that we were at 70% funding. That is going to drastically drop even further. With more state workers retiring, financial issues relating to this pandemic, severe issues surrounding pensions will crop up. For example, France is currently having HUGE pension crisis. My cousin who is a retired teacher in France saw a $300 monthly reduction in her pension payout. This can play out in the states unless we find other sources of state revenue.
Many Americans are blowing thru their savings. That's if they even have an emergency fund to begin with. What's next? Dipping into your 401k because you're desperate for cash. I know a few who had to resort to this during the 2006-09 recession. What's really troubling is this is all speculative. We don't know what will happen in the fall with this virus. The possibility of COVID-19's possible resurgence in the fall/winter is very real. The second/third wave could be even more worse. IMO, most Americans wouldn't be able to take another month or two of social distancing and staying inside. Most couldn't afford to not work. Thoughts?
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