President Trump has recently stepped up his criticism of Democratic-run states and has been loudly complaining about the fact that the coronavirus crisis is about to blow enormous holes in their budgets.
During this evening’s virus press conference, Trump asserted that only “Democrat-run” states are asking for bailouts to prevent the mass layoffs and severe austerity that will occur if the states don’t get any relief from the federal government — and had the nerve to wonder if it had to with “talent” or a different “mentality,” implying that the people in red states were somehow superior to those in blue states.
The President believes only democrat run states are asking for a bailout. He goes on to say the Republican states are in strong shape and wonders if that has to do with talent or a different mentality pic.twitter.com/p3AO9rKaa4
— Acyn Torabi (@Acyn) April 30, 2020
That notion, of course, is ridiculous, and the fact of the matter is that all kinds of states are facing severe budget shortfalls. While blue states like New York, Connecticut, and Rhode Island face huge shortfalls due to lack of tax revenue and spending on healthcare supplies, red states like Texas, Oklahoma, Alaska, and Louisiana are facing huge budget shortfalls due to the collapse of the fossil fuel industry and the bottom-barrel price of oil.
Coronavirus threatens $500bn hole in US state budgets – typically excellent piece by @bhgreeley on the huge financial stress on the budgets of US states. On the ground this matters at least as much as anything decided in DC. https://t.co/eQV0xrdmud pic.twitter.com/DQgstOyjMS
— Adam Tooze (@adam_tooze) April 22, 2020
The pandemic is projected to blow a half-trillion-dollar hole in the budgets of America’s 50 states. If the states are not bailed out, the shortfall is likely to trigger crushing austerity, massive job losses, and an abrupt end to critical public services that could push our economy into years of recession or even a great depression to rival the 1929 crash.