If fewer people are working and fewer business are operating, where will they get the money?
The heating aid funds are pools and the more people who apply, the smaller the individual grant. At most, they will have enough money to give a portion of those applying a portion of what they need this winter. They will also have to raise the food stamp allotment at a time when they can’t even afford to enact meaningful COLAs. The perception of poverty engendered by home equity losses and retirement savings/pension fund losses is going to make higher taxes on those still working a bitter pill. If those people are union and government workers, it will amount to a penalty on their own base. Come winter, this situation is going to snowball out of control of even the DC elite. They will be forced to consider capping energy prices, at least for home heating, which will lead to shortages. There is a feeling out here in the Midwest that we could have an early frost, meaning food goes up. It isn’t only going to be the poor and downtrodden who can’t afford heat and food, it is going to be everyone.
Those hard luck stories will be real, for a change, and they will resonate as everyone is coping with the same situation.
Anecdote:
A friend who is a custom builder with a loyal cliental in Chicago and Boulder and a former income in the 6-figure range, has lost his jobs for the foreseeable future as his clients called him in June to postpone their projects. These folks have seen an asset decline and are having difficulties getting loans. The taxes paid by the clients and the builder will both be much less this year. I do not think these are isolated incidents.
There are no magic money trees.
“If fewer people are working and fewer business are operating, where will they get the money?”
Where do you think they will get the money? It’s very simple. They will get it from us, the 50% of the population that actually pays taxes. They won’t stop till they get all our money.