Home About ATN

News

The Golden Rule, Explained

Feb 16, 2009
We harp. We know we harp. We can’t help it. Some people just don’t get it.

This morning (Feb 13), New Hampshire’s Democratic governor, John Lynch, announced 300 layoffs of state employees. What are the likely consequences of these layoffs? Presumably there will be longer lines at the Department of Motor Vehicles, and other government services will deterioriate. For the unlucky 300, the consequences will be a good deal more dire. Most people live from paycheck to paycheck. When that spigot abrubtly turns off, they will immediately dip into your pocket and mine to claim unemployment compensation.

In New Hampshire, benefits range from $32 to $427 a week for up to 26 weeks.1 For those earning from $2,800 to $41,500 a year, that benefit will be slightly more than half their gross pay. For those earning more, it will be less.

The stresses these people will suffer will be many and varied. Some will not be able to keep up with their mortgages and will be tossed out of their homes (sound familiar?). The values of those houses, now white elephants owned by the bank, will drop through the floor. If the houses are on your block, your home value will decrease as well. If it decreases enough to make your home worth less than you owe on it, you may actually be well advised to abandon it, as at present you have no leverage (or government assistance) to renegotiate your mortgage.

Besides dipping into our pockets for cash benefits and decreasing the value of our prime asset, those 300 laid-off neighbors will cease enjoying the luxury of any discretionary spending, creating a ripple effect (or perhaps we should call it a non-ripple effect) across the immediate purview of their erstwhile economic landscape, increasing the downward slide of local restaurants, movie theatres, hardware and clothing stores, etc., etc. If the effect is great enough (and remember we are talking about 2.5 million of these hapless folks just over the past five months), then many of those establishments will close, further contributing to the downward momentum toward deflation and depression.

Since those who are pretty bad off to begin with (minorities, minimum-wage earners) are generally the first to get it in the neck during an economic downturn, some will become so desperate that they will be driven to extreme measures, becoming a physical threat to their neighbors and the general infrastructure. The court system will become clogged and jails will suffer further overcrowding, requiring yet more millions in public funds.

The Golden Rule—Do Unto Others As You Would Have Others Do Unto You—is not a touchy-feely, altruistic expression of noblesse oblige. It is a survival tactic. We are either in this together or we are in this alone. If we are in this together, we do everything we can to forestall layoffs, foreclosures, and closings, and that includes cutting back for a time on what we have in order to share the temporarily diminished pie. If we are in this alone, there is really only one thing we need to do.

Buy a gun.
____________________
1 Amount and Duration of [Unemployment Compensation] Benefits, accessed Feb 13, 2009
tags: Working Together | Employment | Governance

Copyright © 2008 All Together Now.

Contact Us

Webmaster |

Services

TwitterEmail AlertsTimeWeather

QuikLinx

The End of LibrariesNew Political PartyNoted with Interest

Archives

December 2016November 2016October 2016September 2016August 2016July 2016May 2016April 2016March 2016February 2016January 2016December 2015November 2015September 2015April 2015January 2015November 2014July 2014March 2014December 2013November 2013October 2013September 2013August 2013May 2013April 2013March 2013February 2013January 2013December 2012November 2012October 2012September 2012August 2012July 2012June 2012May 2012April 2012March 2012February 2012January 2012December 2011November 2011October 2011September 2011August 2011July 2011June 2011May 2011April 2011March 2011February 2011January 2011December 2010November 2010October 2010September 2010August 2010July 2010June 2010May 2010April 2010March 2010February 2010January 2010December 2009November 2009October 2009September 2009August 2009July 2009June 2009May 2009April 2009March 2009February 2009January 2009Oct-Dec 2008Jul-Sep 2008May-June 2008