Government Layoffs Looming

Here’s some discouraging news about the direction of the economy: An economist predicts that up to 400,000 government workers could lose their jobs over the next year, because state and local governments will be laying off people en masse to close budget gaps.

According to a story in USA Today, New York City is planning 4,500 layoffs

Recession Briefing: White House Drops 5.1% in Value

What you need to know today to survive and thrive in the recession.

Last year, real estate site Zillow estimated the White House was worth $308 million, based on the home’s physical attributes (132 rooms! 55,000 square feet!), historical value and housing performance in the local Washington, DC market. One recession year later, estimates put White House at a bit less: $292.5 million, a drop of $15.6 million, or 5.1 percent from last January. (Zillow Blog)

The recession hit this year’s college freshmen hard, affecting how they chose a school as well as their ability to pay for it, according to an annual nationwide survey released Thursday. Over all, students were more likely than previous freshmen to have a parent who was unemployed and less likely to have found a job that might help pay for college. (New York Times)

The lobbying industry demonstrated its resilience last year in the face of the recession and is fully expected to smash previous spending records. On Wednesday, lobbyists filed their fourth-quarter reports, offering the first glimpse at their spending totals for the year. (Huffington Post)…

Recession Lexicon: Clunkerf*ck

/n. What happens when the government issues coupons on cars but doesn’t use the same printing machine as it seems to for currency.

Spotted here, and in a comment on Facebook, in discussion of the cash that ran out on the government subsidy “Cash for Clunkers” program that gave consumers a $3,500 or $4,500 voucher per car for so-called gas guzzlers that could be traded in for fuel-efficient vehicles. The program was so successful at encouraging auto sales that Congress had to approve an additional $2 billion for it, on top of the initial $1 billion. But dealerships have to wade through extensive (17 pages) paperwork and face delays in getting paid by the auto giants—and some consumers lose out on vouchers that have run out. What’s more, so much for the environmental benefit since the clunkers are creating a pileup in the junkyard. No wonder some dealerships are opting out.

Ex. Dealerships are up to their ears in paperwork for the Cash for Clunkers program, and some owners will not be able to cash in after all, resulting in a general clunkerf*ck…

We Don’t Need More Tax Cuts

Republicans in Congress seem pretty sure that tax cuts are the way out of the recession, and they want to see more in the stimulus package that goes to the president’s desk. But when they go to vote on the package today, they’ll likely be taking the country in the wrong direction: Americans need more government spending, not more tax cuts.

Read more…