Boondoggle upon Boondoggle

Discussion in 'Economics' started by drsteph, Oct 4, 2005.

  1. Couldn't believe this blurb from

    New Orleans will lay off 3,000 city workers -- about half the workforce -- because of financial constraints caused by Hurricane Katrina, Mayor Ray Nagin said Tuesday.

    Citing a loss of city revenue after the storm, Nagin said the city for weeks had "searched high and low" for the necessary payroll funds, requesting help from the state and federal governments.

    "We've talked to local banks and other financial institutions, and we are just not able to put together the financing necessary to continue to maintain our city hall staffing at its current levels," he said.

    Nagin said it was "with great sadness" that New Orleans was "unable to hold on to some of our dedicated city workers."

    He said the city hopes to save from $5 million to $8 million on a current monthly payroll of $20 million after the layoffs, which begin taking effect Saturday.

    Most of those being placed on emergency leave without pay are in "nonessential" administrative positions, the mayor said. Among those exempt from the layoffs are public safety and sanitation employees.

    Considering that government workers are right now about the only source of steady pay that 1) would allow wage-earning folk to return and rebuild and 2) jump start the local economy, allowing others (the have nots) to switch into service jobs assisting these folk (the haves) and restart their lives?

    Sorry, but does Nagin really understand what he is doing? Debts can be defaulted and forgiven, covered, diluted, and erased, but without jobs, people will simply drift away...

  2. VictorS


    but very few are here (new orleans) to work for that "rebuilding" pay.