Posted on 12/15/2008 2:09:21 PM PST by 2ndDivisionVet
It may not be the next Great Depression -- yet -- but Gov. Ted Strickland said today that he and the nation's governors are facing the worst economic conditions since the 1930s.
“I contend that no governor has faced the same circumstances that I’m facing since the 1930s," Strickland told reporters after an event at the Mid-Ohio Foodbank in Columbus. "These are very unusual circumstances.”
Strickland said he wasn't singling out himself or Ohio, but that the convergence of problems in the housing market, the collapse on Wall Street and other issues has every state but Alaska in or near recession.
The comments are part of an ongoing effort by the Strickland administration to publicize the state's economic struggles in advance of the the next two-year budget that the governor must introduce by February and the legislature must pass by June 30.
Last week, Strickland released a 13-page document detailing prison closings, mass layoffs and other actions possible if state agencies had to cut a quarter of their budgets to fill a projected $7.3 billion budget gap without federal financial help.
Some political analysts say Strickland is softening the political ground for painful budget cuts that may be ahead, or even other unpopular moves that may be necessary such as raising taxes.
Strickland said he's merely trying to be open and honest about the extent of the budget problem and has been making his case to anyone who will listen. Yesterday, he met with 15 Ohio business leaders at the Governor's Residence for about two hours, he said.
As for higher taxes, the governor continued to say today that he thinks tax hikes would be counter-productive in the current recession but made it clear he will do what he has to.
"I will deal with the circumstances as they unfold and will make whatever decisions are necessary to see that we have a balanced budget while maintaining essential services for our people,” he said.
Strickland expects President-elect Barack Obama to be able to sign a massive economic stimulus plan with help for states on or shortly after he takes office Jan. 20. But he cautioned that it likely won't solve all of the state's budget woes.
"I think help will be forthcoming," Strickland said. "Will it be sufficient to prevent us from having to make very, very difficult decisions and perhaps huge reductions in the operation of this state’s government? I doubt it. I think it’s going to be necessary for me as governor and for us as Ohioans to confront difficult choices in difficult times.”
You said — “Unless we have hyperinflation. Then all of us are screwed, employed or not.”
I think almost everyone would rather deal with the issues related to inflation than the issues dealing with drastic deflation. That’s a nightmare for most people...
I actually think that inflation can be managed a lot easier than an economy that is free-falling into drastic deflation. AND..., that’s exactly what the government is doing now... “inflating”... which I think it should... (just shouldn’t go into hyperinflation).
But, I was around before, when we had inflation at much, much greater rates than they have been in a long while. It’s got a ways to go before it gets there. I don’t think we’ll get into hyperinflation.
The truth is that the nation was in far, far worse shape at the end of and immediately following the Jimmy Carter years. Carter was a disaster. Jobs lost, huge unemployment, huge inflation, huge gasoline cost, huge interests rates....it was terrible and the numbers prove it.
The truth also is that Strickland has had 2 years to do something in Ohio and he’s totally failed.
He did nothing to prevent the loss of DHL and thousands upon thousands of jobs.
He did nothing to prevent the loss of the Batavia Ford plant.
He did nothing to prevent the loss of the Dayton GM plant.
He did nothing to prevent the loss of the S.Ohio Westec plants.
He’s done nothing to bring down the historically high taxes.
He’s announced a huge budget shortfall....and will probably want more TAXES.
He’s a disaster,
but he’s a democrat,
so the media
will cover for him.
You forgot our wonderful, Great Friend of ACORN, Jennifer Brunner. Speaking of ACORN, anyone hear how some of those cases against ACORN are going? NO? Me neither.....
What happens when we have deflation? I mean, what economic factors are in play then and how does it affect the people? Falling prices, on the surface, doesn’t sound bad.
I was more worried about hyperinflation, where inflation voer 3 years exceeds 100%. I thought that’d be much, much worse, like in Germany pre-Hitler, where people couldn’t even afford food.
But I’m probably not seeing the big picture on deflation.
I think deflation is the worst nightmare (overall in the entire economy) that the government and other normal people could ever have. That’s a nightmare situation. That’s why everyone in government is willing to go along with huge bailouts to prevent deflation from happening. They’re going to prime the pumps big time... hoping to get only minor deflation (which we’re getting already)...
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