Showing posts with label unions. Show all posts
Showing posts with label unions. Show all posts

Saturday, April 11, 2015

Scapegoat Economics

In the wake of the economic crisis of 2008 the United States has repeatedly participated in the blame game with immigrants and with ethnic minorities. Now it is extending domestic scapegoating to still others. Governors in the US now increasingly attack state employees, their unions and pensions as if they, rather than the crisis, had suddenly become the economic problem. Mayors across the country do the same to municipal workers. Of course, both state and municipal budget problems since 2008 are primarily the results of high unemployment and reduced consumer spending. In short, it was and remains the crisis since 2008 that played and plays the key role in cutting governments' tax revenues and hurting government budgets. Growing and more effective tax-evasion strategies of business and the rich have had the same effect. Responding to lowered tax collections, politicians fearful of damage to their careers refuse to raise tax rates. Instead they embrace spending cuts that they justify by means of scapegoat economics.