August 18, 2009
In my recent post about when this recession might end, I mentioned that I fear there will be a recession in the public sector which will cause problems for all those already facing financial problems.
As if by magic, I see on the BBC website that the city of Chicago has started to shut down – only for a day now – in a bid to save money. This cannot save them enough, of course, but it is evidence that belts are being tightened and local level politicians are trying desperately to balance their books.
It seems logical to me that since the early signs of the banking collapse were seen in the US that the first signs of a public sector recession should be seen there. That said, who suffers and when will relate more to how councils and governments are managing their money – and have managed their money in the recent past.
Me thinks there will be a lot of this to come. Worldwide.financialguy