| Job Losses on Wall Street Threaten State Finances |
| Written by Alex Oshinsky |
| Wednesday, 19 October 2011 02:21 |
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It’s no surprise that New York has had its fair share of budgetary issues over the past few years. Unfortunately for New Yorkers, the end to these issues will not be coming in the near future. According to The Wall Street Journal on October 8, 2011, Governor Andrew Cuomo warned New Yorkers that another “tough budget is coming up, with at least a $2 billion deficit.”
Along with continuing budget deficit, the economy is facing even more of a strain in the form of unemployment. As I previously mentioned in a recent article (See "A DIFFERENT TAKE ON "THE OCCUPATION"), Wall Street is facing its fair share of economic woes, with companies continually announcing layoffs. Most recently, according to State Comptroller Thomas DiNapoli, there is a prospect of 10,000 additional job losses on Wall Street over the next year.
While many will lament over the loss of jobs for Wall Street and while others (such as those in the Occupy Wall Street protests) might think the loss of jobs on Wall Street is some sort of vindication for the past actions of Wall Street, overall DiNapoli predicts that this new development on Wall Street “Could pose significant challenges for New York’s finances because of Albany’s relatively high reliance on Wall Street profits to fund state government.”
Interestingly enough, this statement by the State’s comptroller shows that New York State, and thus every single program financed by the state, has some level of reliance on the profits of Wall Street. In other words, when Wall Street does well, New York State does well.
According to The Buffalo News, the Cuomo administration “Sought to downplay DiNapoli’s warnings and the potential impact on the budget.” Obviously the Cuomo administration recognizes the importance of this news and its corresponding negative affects on the State. Comments (2)Subscribe to this comment's feed...
Okay two things here...one, I'm really not sure what "freckling on their yachts" means. But beyond that, the article isn't trying to evoke sympathy for job loss on Wall Street (although keep in mind these aren't the people with the "10 million" paycheck being laid off, so I think any person should have some degree of sympathy for somebody losing their job and their livelihood) but the article shows how the layoffs on Wall Street will negatively affect the state in that we have some reliance on Wall Street and the comptroller says our budget will be negatively affected (meaning every state program is somewhat affected which I think we can all agree is a bad thing).
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October 20, 2011
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