Friday, June 03, 2011

What happens if we cut everything Congress wants to... A 2 Speed Nation

Right now, Congress is attempting to remove much of the nation's safety net in deference to cutting the deficit - at the federal level.  In states as ideologically different as California, Texas and Wisconsin - states are cutting programs for the poor and the young and massively increasing tuition costs.
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So, let's say that all of this occurs, and taxes are not raised.  And, let's say this much lower deficit with just cuts, no tax increases.  What do we have?  I think the answer is mainly a Two Speed nation -like Mexico, with a huge army.
Go to Puerto Vallarta, you'll see a 2 speed country.
It kind of works.

Maybe this isn't so bad.  It will probably not be too bad  for people with access to money.  Already there are public schools in good neighborhoods that are good (often due to property taxes).  Public schools in big cities that suck and so the people who can afford it, pay for private school.  If you live in a good suburb or can afford private police, crime will probably be okay.
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You can already see the interplay of reduced services around you.  You see communities in New Jersey and other locations that have had to cut services due to lack of funds.  We recently saw Fire Departments letting houses burn down if the owners didn't pay for fire protection.  This week someone died in the ocean on San Francisco Bay as "rescue" workers watched, forbidden to enter the water due to budget cuts.  So if you have money, you live where you can afford to pay property taxes that support you and your family - or you pay extra for that support (secure apartment complexes, doormen, etc.).
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So, best guess, is that we move into a Mexican kind of situation where the wealthy are well off and the poor aren't starving, but are not "middle class".  It's not a picture I am comfortable with, but my vote hasn't mattered in years (even though I still vote).
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My guess is we will see more and more gated communities - like they have in Mexico, Russia and China.  Sort of "ex-pat" communities in our own country.  I figure that will happen in major population areas.  IN minor population areas, the cities will get more homogeneous and less accepting of outsiders.  I think this is part of what is driving the laws against immigrants in Arizona and Georgia. Unable to fight the process of stratification foisted on us by corporate lackeys in Congress, voters have turned their anger towards the one group relatively unprotected by business.  Poorly trained immigrants.