First of all, tax revenues are way down.
Individual Federal Income Tax Revenues for:
2007 - $1,883,540,000
2008 - $1,812,530,000 < layoffs, housing collapse, stocks crash
2009 - $1,369,130,000
2010 - $1,392,990,000
America has lost $500 billion a year in federal income tax revenues paid into the U.S. Treasury since the mass layoffs began during the Great Recession in 2008.
Now by January 2012, with 20 million unemployed Americans without any income at all, more jobs still going overseas, and more cuts in government workers, how can this go on? How can the economy sustain itself?
And the Republicans want to cut SS disability, food stamps, unemployment benefits, and food stamps too. But banks and big corporations continued to earn record profits and give themselves HUGE bonuses.
New York Times: "Banks are due to begin reporting earnings this week, and the numbers are likely to leave investors as frustrated as ever, making the banks even more desperate to impose new charges on consumers’ accounts and rack up bigger trading profits. Wall Street types have dumped their bank shares en masse. The government-mandated cuts in once-lucrative debit-card swipe fees, have prompted banks to try to recoup billions of dollars in lost revenue with increases like Bank of America’s controversial new $5 monthly debit card fee. Stocks for Bank of America, the nation’s biggest bank, are down more than 50 percent since the start of the year, while Citigroup is down more than 40 percent."
Meanwhile, Bank of America's CEO got a $9 million bonus.
As thousands of people across the nation are "occupying" to protest corporate greed, some economists already think the party might soon be over for the big bankers and other Wall Street fat-cats.
As an aside: One commentator on Fox News tonight said "the left" had Tea Party envy, and that's why we have the "Occupy" protests. Why do the Republicans and Fox News always call the people protesting "those on the left" and think they align themselves with Democrats? Just because, unlike "the right", they care more about real people as opposed to corporations?In 1929 the Harvard Economic Society declared that a depression was “outside the range of probability.” Whoops!
The Federal Reserve Chairman Ben Bernanke recently testified to Congress that the recovery is "close to faltering." Goldman Sachs said Europe could fall into a recession by the end of the year and push the U.S. "to the edge" of one itself.
Companies have already laid off so much staff, and are now running so lean, that it won't be as easy to cut as many jobs like they did during the last recession. But even so, that doesn't give much consolation to the 20 million unemployed Americans who have already been suffering greatly. And with low tax revenues and more budget cuts and more government jobs lost, couldn't that number swell to double? Maybe 40 million by the end of 2012?
With 45 million Americans dependent on food stamps and no light at the end of the tunnel, how will they fair when the Republican's plan is to cut taxes more, bringing in less revenues, and making up the difference in lost tax revenues by cutting assistance to those who lost their jobs -- and cutting more jobs in government. It's almost ironic in that that is the Republican's strategy for "fixing" the economy...tax the rich less and withhold more from the poor.
Which also begs the question: Why wouldn't a wealthy "job creator", who hasn't suffered during the recession, be willing to pay a little more in taxes to help fund food stamps for a jobless person who was laid off, especially if that "job creator" wasn't willing to hire them?
From the New York Times: The Economic Cycle Research Institute has correctly predicted the beginning and the end of the last recession. Over the last 15 years, it has gotten all of its recession calls right, while issuing no false alarms. That’s why it’s worth paying attention to its current forecast. It’s chilling. As bad as the economy has been, it’s about to get worse. The institute’s CEO also says the timing will be brutal, and not just for portfolio managers and incumbent politicians. Millions of people who lost their jobs in the 2008-9 recession are still out of work. And the unemployment rate in the United States remained at 9.1 percent in September. More pain is coming. The CEO thinks the unemployment rate will certainly go higher.
“I wouldn’t be surprised if it goes back up into double digits,” he says. Taken as a whole, he says, these and other indicators are quite clear. “We’ve entered a vicious cycle, and it’s too late: Another recession can’t be averted.”
And as for the original 99ers, those who were first laid off in 2008 and have already been unemployed for over 3 years, their futures looks very bleak. They have already maxed out all their jobless benefits well over a year ago, and ABSOLUTELY NOTHING in Obama's new jobs bill will help them at all. If there is a "double dip" recession, then those poor bastards are toast...they are doomed!!!