Christie encourages government to “jump off a cliff…”
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From Mish Shedlock’s blog:
Governor Chris Christie: There’s no time left. We have no room left to borrow. We have no room left to tax. So we merely have room left now, to do this. We are all reaching the edge of a cliff. And it reminds me a bit of that part of Butch Cassidy and the Sundance Kid where the had a seminal decision to make. So what did they do? They held hands and they jumped off the cliff.
We have to hold hands at every level of government, state county, municipal, school board. We have to hold hands and jump off the cliff.
By jumping off a cliff, Governor Christie is asking local governments to join him inflicting a severe austerity program to cut public employees, reduce affordable housing programs, and slash public services. As it stands now contracts with employees cannot be touched, bondholders must receive their taste, and cuts in programs funded by the federal government will cost more than they save.
Not that he is wrong about the box government has painted itself in with years of economic growth ideology, but we do wonder how he manages to deal with the consequences – a massive collapse in demand.