With the ever expanding financial problems in the US and the World, state governments are having trouble coming up with the money they have promised to the unemployed. Not least of which is New York State.

In the Keynesian framework, during a recession when consumers tend to lower their outlays, it is the duty of the government to step in and boost its expenditure. For instance, the government could employ various unemployed individuals to dig holes in the ground.

The global recession is starting to have a direct impact on the Rochester area. Xerox will be reducing its worldwide workforce by 3000 employees during the next 6 months.

There are reasons to believe this coming crisis is different and bigger than the world has ever experienced. Instead of using globalism in a positive fashion, it’s been used to globalize all of the mistakes of the politicians, bureaucrats and central bankers.

Government Projects do not “Create Jobs”
Daily Article from Mises.org by Isaac M. Morehouse | Posted on 8/19/2008

Yesterday while driving I heard an ad on the radio promoting more state spending on roads. Besides being a bit overreaching (”Is my family really safe with our current roads?”) the idea of better managed and maintained roads makes some sense and I thought the ad had a decent point — especially as I rumbled over potholes and hoped not to end up in a major traffic jam …