Posted On: Monday - April 13th 2020 6:42PM MST
In Topics:   General Stupidity  Global Financial Stupidity  Economics
A friend brought up a very good point about the financial aspect of this economic shutdown. It came up, if I recall correctly, when we were near downtown wondering where was the usual parking-meter guy. (I got a line ready, BTW, in case I forget to feed the meter or don't run over to the car fast enough when (or now, IF) we see him come down the block: "Hey, that windshield's just crawlin' with virae, man! We drove through a Corona-cloud on the way over. Do what you gotta do, I mean, but I'm just sayin' ....")
Retail is barely happening. Restaurant business has got to be down 75% or more, even with take-out. Bars don't do too much take-out, but, per a different friend, they do have their ways... shhhh, speak easy ... How in the hell is the State gonna make up that lost sales tax revenue. How much money are States with income taxes going to lose with an economic quarter of huge unemployment, AT BEST?
Then, there are the cities and counties. If the renters are told to not sweat the rent payments, are their respective landlords going to feel obligated to pay the much-higher property taxes? The city gets extra sales tax money in places, and there's the little things like those parking meters. Nobody is putting money in - hell, we're not even supposed to be here! That ought to work in court, once the courts open up, backlogged 2 or 3 months, "but, Judge, that couldn't have been my car. I was back home sheltering-in-place as ordered, Your Honor." How about the speeding ticket revenue? You can give out tickets, but when's the court date gonna be. Ask for a jury trial, people - that'll be interesting too.
Society is standing down in a lot of ways. That prevents governments of all sort from getting their "due" out of people in all kinds of daily transactions. "I dropped the videos in the box back in April, just after you closed, but before they were due. I'll see you in hell before I pay those library fines, bitches!"
It turns out that parasites do better with a healthy host. (But then, I'm no crack epidemiologist, either.) What is the deal then? Will local and State governments become even more beholden to Uncle Sugar, as the Fed-Gov doles the money back out to reimburse them for these huge revenue losses? Is that part of the plan of this Infotainment Panic-Fest, or just a way of not letting this crisis go to waste?
I don't think anyone knows all the ramifications of this economic shutdown. The tax starvation is one of them. I'd like to think it could result in restructuring to smaller governments all over, but that is probably dreaming. It IS after all, very hard to fire these people. Can we starve them out? I'd like to see the Governor's salary cut by 75% due to lack of funding. He may just see the light.