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OpEdNews Op Eds    H2'ed 1/11/10

The Recession is Over, the Depression Just Beginning

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Stephen Lendman
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-- a 0.4% cut to state colleges and universities;


-- a loss of $62 million in mental health services, and many other cuts from dozens of gubernatorial line-item vetoes affecting education, healthcare for the indigent and uninsured, senior food aid in two counties, a volunteer Bay City health clinic, the traditional Michigan State Fair since the 19th century, much more; according to political leaders in both parties, they're only the beginning as hard times are forecast for many more months or years.


In addition, shortfalls keep exceeding cuts, and according to the Detroit Free Press:


"Michigan's budget problems will almost certainly worsen before they improve. Tax revenues are expected to remain flat or decline. Program needs - from welfare to the cost of public employee salaries and benefits - will continue to grow. (Most of the state's unionized employees are scheduled to get a 3% pay increase next spring.) And about $1.4 billion in onetime federal stimulus money to balance the 2009-10 books will be gone," and not likely replaced.


Detroit - A Dying City


On December 16, Detroit News writer Mike Wilkinson's article headlined, "Nearly half of Detroit's workers are unemployed." They don't have jobs and those with them work fewer hours.


"Using a broader definition of unemployment, as much as 45 percent of the labor force has been affected by the downturn. And that doesn't include those who gave up the job search more than a year ago, a number that could exceed 100,000 potential workers alone."


Yet for over 100 years, auto companies provided high-paying, good benefits jobs for Detroit workers, drawing many from around the country there for them. No longer with the city and industry in decline. Especially in the last decade, half its population left, and if the present trend continues, Detroit may be in its death throes, and what's happening there may hit other cities.


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