Jun 13th 2015
THE struggle has been long and arduous. But gazing across the battered economies of the rich world it is time to declare that the fight against financial chaos and deflation is won. In 2015, the IMF says, for the first time since 2007 every advanced economy will expand. Rich-world growth should exceed 2% for the first time since 2010 and America’s central bank is likely to raise its rock-bottom interest rates.
However, the global economy still faces all manner of hazards, from the Greek debt saga to China’s shaky markets. Few economies have ever gone as long as a decade without tipping into recession—America’s started growing in 2009. Sod’s law decrees that, sooner or later, policymakers will face another downturn. The danger is that, having used up their arsenal, governments and central banks will not have the ammunition to fight the next recession. Paradoxically, reducing that risk requires a willingness to keep policy looser for longer today.
Yep, Federal data released on Wednesday showed that New Jersey’s economy was one of the slowest growing in the nation in 2014…. imagine how screwed this state will be when the next recession hits? One in seven workers in NJ is a public sector worker, and we have $170bn in unfunded pension, healthcare and accumulated leave benefit costs still to pay for despite already paying the highest state & local taxes in the nation. The Democrats solution? Raise taxes more.
How about NJ gets back some of the several hundred BILLION dollars that we have been shortchanged on for the past 15 odd years? We get back less than 65 cents on the dollar to prop up numerous bastions of conservatism (e.g., red states like Alabama, Louisiana,Mississippi, Arkansas, Kentucky, etc.) … if we can get 70-75 cents on the buck or so and the unfunded liability issues disappear.