States Ignored Warnings

State governments had been warned about the shrinking amount of money being set aside to pay unemployment insurance to laid off workers as far back as 3 decades ago. As a result of states ignoring these warnings, when the Recession hit, 30 states had to borrow $41.5 billion from the federal government to pay unemployment to their growing number of jobless people. Click the image to enlarge.

Unemployment insurance
Unemployment insurance sinks as the States continue to ignore the growing problem...

Now, those states have to find the money to pay interest on the loans. Usually, that involves placing a special tax on businesses until the loan is paid. States may resort to tapping general revenues, making it more difficult to pay for schools, roads and other needed state services, which could result in more taxes. At least they can’t blame President Obama for this …smdh…

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