I ask again, what date do we reopen our state economy? There are economic
consequences to any governmental decision. We can see this on a constant
basis in Connecticut. Governor Lamont's decision to shut down Connecticut's economy is having enormous repercussions to the state and its citizens.
Those signing up for new unemployment claims is at an all time high with over 402,000 new claims being filed in the past few weeks with more being processed. These claims equal levels not seen since the Great Depression of 1929-1933. We are seeing now in Connecticut an estimated 18 to 20% unemployment rate or roughly one in five workers are now out of work due to this shutdown.
Obviously high unemployment rates create massive economic issues for Connecticut. These economic issues include a massive downturn in tax revenues being collected, a massive cost in paying out unemployment benefits, and a massive increase in the state debt which is currently $140 billion dollars in short and long term debt along with unfunded liabilities. How much higher will it go? In my opinion we will see an additional $5 to $15 billion dollars in debt be added due to this shutdown. We also see a massive budget deficit for Fiscal Year 2019-2020 due to the the lack of tax revenue coming in. Governor Lamont has simply said he is glad we have a rainy day fund of approximately $2.5 billion dollars. How far is that going to go during this crisis? When and how will it ever be replaced in the future if we have a long term economic contraction in the state? Why hasn't Governor Lamont instituted cuts in state spending for all non essential non virus related spending? Federal funds for the virus being sent to Connecticut will not cover all the state monies being spent at this time.
We know now the new commission appointed by Governor Lamont has until May 20th just to submit a report to him on how to reopen the economy. I find it interesting that Indra Nooyl who was the former CEO of Pepsi is co-chairing this committee. I would think that her background in private industry would allow her to move quickly and come up with this report in far less time than on May 20th. As a former CEO of Pepsi would she move this slowly to resolve a problem of this magnitude in her former company? I also find it very interesting that no elected State Representatives or Senators were picked for this committee. In reviewing the individuals on this committee and their backgrounds I really do not see many new ideas and policies being generated from them nor do I see how this type of committee follows our state constitution? How is this legal? I thought we had an elected Representative Republic/Democracy form of government where we elected individuals to represent us? However as we see in a crisis the state seems to avoid the state constitution and laws our state was founded on. We as taxpayers must accept now the decrees of this committee now as the rule of law to govern our economic lives here in the future. Why?
What an economic mess.
I leave you with this thought:
We would not have been the United States of America for 246 years if we allowed fear and shame to prevent our individual rights and freedoms that our guaranteed by the Bills of Rights and the Constitution.
Sunday, April 26, 2020
Part Two: Economic Consequences of Government Decisions-What Date Do We Open?
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