Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

10/22/2012 (2 years ago)

Catholic Online (www.catholic.org)

Obama can't and Romney won't fix it either.

Cities across the nation remain in distress, despite the supposed recovery that should be reversing the tide of municipal cuts and bankruptcies. Earlier this year, three California municipalities declared bankruptcy, and have suffered an exodus talent as those who can leave do so, seeking places that can pay them. 

Neither Romney nor Obama are prepared to do anything to save the situation.

Neither Romney nor Obama are prepared to do anything to save the situation.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

10/22/2012 (2 years ago)

Published in Business & Economics

Keywords: Bankruptcy, municipal, California, cuts, government, taxes


STOCKTON, CA (Catholic Online) - The California bankruptcies, and those looming across the nation, have not been caused by mismanagement or corruption, but rather by the collapse of the housing market. As property values dropped and people lost homes, so went tax revenues. 
Without taxes collected from property, cities have been forced to try and make up what they can with local tax increases. These, of course, have been wildly unpopular. A more popular choice with people, but terrible for local government employees, have been the systematic cuts across the board to local government.

Layoffs, attrition, and pay freezes have just been the start. Local governments are having to make do with aging infrastructure and material, reducing efficiency. This while pay-frozen workers must do the work of their laid-off or retired co-workers who are not being replaced. 

The end result is that municipal governments across the country are ill, and doing worse. 

The situation is unlikely to change until people become willing to pay more taxes or the economy improves to the point people can afford homes again. 

There are some signs of hope, but they're faint. According to trends, people are returning to work, but the pace of this recovery is slow. Also, housing prices seem to have bottomed out and are making a slow increase. Both of these factors are good for cash-strapped municipal governments, but neither development is enough to reverse the steady decay of municipal government. 

The end result is bankruptcy for some cities. A tough decision that tends to encourage even more exodus. In some places, such as Scranton, Pennsylvania, workers have seen their pay cut to minimum wage. Such pay cuts often include police and fire staff. For many of these people, a few months at minimum wage can spell financial ruin as vehicles and homes are eventually lost. Many quit their jobs and move elsewhere rather than endure the humiliation of personal bankruptcy - who wouldn't? 

Talented people who can leave for wealthier communities, do so. Police officers, doctors, even teachers, move if they are able. Nobody wants to work without hope of a pay raise or to live in fear of a layoff or pension cut. 

Ultimately, neither the Obama administration, nor a proposed Romney administration is likely to do anything either. Romney has already advocated allowing the foreclosure process to "run its course" which helps nobody in the short-term but investors. Meanwhile, Obama has done all he can, or is going to do, which has not done much to stave off municipal bankruptcies. 

Unless the economy sees broad, substantial growth in the next year, municipal bankruptcies are likely to increase across the nation. 


---


Pope Francis: end world hunger through 'Prayer and Action'


Copywriter 2015 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for June 2015
Universal:
That immigrants and refugees may find welcome and respect in the countries to which they come.
Evangelization: That the personal encounter with Jesus may arouse in many young people the desire to offer their own lives in priesthood or consecrated life.


Rosaries, Crosses, Prayer Cards and more... by Catholic Shopping .com


Comments


More Business & Economics

'Enough with all the rules' firework industry calls out to Obama Watch

Image of

By Nikky Andres (NEWS CONSORTIUM)

This year, more states have allowed people to buy pyrotechnic materials, such as sparklers and Roman Candles. In fact, this year has been wonderful for fireworks manufacturers, since the projected 2015 sales of celebratory explosives are estimated to top $1 billion. ... continue reading


Whole Foods accused of greatly overcharging customers Watch

Image of

By Nikky Andres (NEWS CONSORTIUM)

Whole Foods, the American foods supermarket chain that specializes in organic goods, has been accused of massive overcharging. The New York City Department of Consumer Affairs explained they have discovered "systematic overcharging for pre-packaged foods" at the city's ... continue reading


Strange and powerful 'boat swallowing' vortex appears in Lake Texoma Watch

Image of

By Nikky Andres (NEWS CONSORTIUM)

A strange, giant vortex, estimated to be around 8-feet in diameter, has appeared in Lake Texoma. This occurrence is surprising and perhaps threatening. However, there is an explanation. MUNTUNLUPA, PHILIPPINES (Catholic Online) - Lake Texoma is known as one of the ... continue reading


Is it time to stash money under mattress? 'It's time to hold physical cash,' fund manager says Watch

Image of Ian Spreadbury declined to predict the exact trigger but said it was more likely to happen in the next five years rather than 10.

By Catholic Online (NEWS CONSORTIUM)

Is it time to cash your paycheck and then stick it into a hatbox for a rainy day? According to British fund manager Ian Spreadbury, who invests more than £4 billion of investors' money is gravely concerned that a "systemic event" could rock markets. The upset ... continue reading


In spite of strong showing, Ron Paul predicts Apocalypse on Wall Street Watch

Image of Ron Paul has predicted economic doomsday previously. As stocks continue to make new highs, he remains just as convicted as ever that there

By Catholic Online (NEWS CONSORTIUM)

Things seem to be on an even keel right now but according to former Representative Ron Paul, the Federal Reserve's easy money policies have left stocks and bonds are on the verge of a massive collapse. LOS ANGELES, CA (Catholic Online) - "I am utterly amazed at ... continue reading


The U.S. public is asked - Which woman do YOU want to see on the new $10 bill? Watch

Image of The new $10 bill will also include a

By Catholic Online (NEWS CONSORTIUM)

It's a question being posed to the American public... which American woman do they want to see on the new $10 bill? The revamped $10 bill will go into effect in the year 2020. U.S. Treasury Secretary Jack Lew wants the next generation of U.S. currency to ... continue reading


Who gave them the right to freeze the national debt? Watch

Image of Treasury Secretary Jacob Lew sent a letter to House Speaker John Boehner and other congressional leaders in March that informed them that he was planning to declare a

By Catholic Online (NEWS CONSORTIUM)

There is such a thing as taking a "bull by the horns," but one wonders who granted them this extraordinary power. Treasury Secretary Jacob Lew sent a letter to House Speaker John Boehner and other congressional leaders in March that informed them that he was ... continue reading


Denied for faith: Arizona man allegedly rejected from job for being an 'obese Christian' Watch

Image of

By Talia Ramos (NEWS CONSORTIUM)

After being rejected from a job at a web hosting company, a man received an email that allegedly had an attachment where he learned the reasons why he wasn't accepted. According to his statements, he was rejected because of his faith and his weight, as stated in the ... continue reading


'We're in for a huge change in society,' billionaire Cartier owner declares Watch

Image of Nicknamed

By Catholic Online (NEWS CONSORTIUM)

Johann Rupert, the executive chair of luxury brand company Richemont in South Africa has a sobering view of the future. Making billions peddling Cartier jewelry and Chloe fashion, Rupert says that the tension between the rich and poor is set to escalate as ... continue reading


14 years after 9/11, One World Trade Center lacks the bustle of the old Twin Towers Watch

Image of The new One World Trade Center lacks the bustle of the old, with a third of its office space remaining empty.

By Matt Waterson (NEWS CONSORTIUM)

Following the aftermath of the September 2001 attacks in New York, Larry Silverstein, the property developer who had bought the lease to the World Trade Center for more than $3 billion, vowed he would rebuild. LOS ANGELES, CA (Catholic Online) - Almost a decade ... continue reading


All Business & Economics News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Daily Readings

Reading 1, Genesis 27:1-5, 15-29
1 When Isaac had grown old, and his eyes were so weak ... Read More

Psalm, Psalms 135:1-2, 3-4, 5-6
1 Alleluia! Praise the name of Yahweh, you who serve ... Read More

Gospel, Matthew 9:14-17
14 Then John's disciples came to him and said, 'Why ... Read More

Saint of the Day

Saint of the Day for July 4th, 2015 Image

St. Elizabeth of Portugal
July 4: Elizabeth was a Spanish princess who was given in marriage to ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter