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Chrysler just told the world that it'll shut down all 30 of its manufacturing plants for at least 30 days, starting Friday. Shortly after Chrysler's announcement, Ford revealed that it'll extend ten plants' two-week holiday shutdown for an additional week. GM said last Friday that it'll shut down most of its plants during the first six weeks of next year.Idled U.A.W. workers, by the way, reportedly will be paid most of their wages and will be eligible to collect state unemployment benefits during these "temporary" closures. Their union contract requires it.
None of this comes as a surprise, really, considering that Congress (thanks to the U.A.W.) didn't throw the automakers a lifeline and neither has the Bush administration (so far). Only time will tell if we're seeing the final death throes of the U.S. auto industry.
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Last week, I wrote about state budget cutbacks projected by Ohio Gov. Ted Strickland -- deep, across-the-board cuts in spending, but no tax increases. New York Gov. David Paterson, facing his own $13.7 billion budget deficit and a $6.6 billion drop in tax revenues, is taking a very different approach to closing the gap.
Gov. Paterson's proposed 2009-2010 budget actually increases spending overall, despite eliminating hundreds of state jobs, closing prison camps and youth facilities, releasing 1,600 prison inmates early and slashing school funding and senior services. And because this is New York, there must be higher taxes and fees:
- Eliminating the tax rebate for homeowners.
- Eliminating the sales-tax exemption on clothing under $110.
- A new sales tax on cable and satellite TV and radio.
- New sales taxes on manicures, massages and haircuts.
- New sales taxes on movie tickets and downloaded music.
- An 18% sales tax on non-diet soda.
- Expanding the "bottle bill" to non-carbonated beverages.
- Increasing the fee for the state fishing license from $19 to $29 for anglers in pursuit of salmon or trout.
Now that's a pro.
I'll stay here in Ohio, thanks.
