MONEY MATTERS

The state and local governments are hit hard by the recession and are cash-strapped. They say that they have no other choice but to cut out the essential services that have been provided for generations. If their politicians are ready to increase the taxes there is no need for these basic infrastructures to be cut. Colorado Springs has made headlines with its desperate attempt to save money by turning off a third of its streetlights, in a number of states local governments are breaking up roads they can no longer afford to maintain, and returning them to gravel. A nation which was once among the first to provide basic education to all its children, is now cutting back. Teachers are being laid off and in Hawaii, the school year itself is shortened. The government blames the recession as the reason for all of this. But the federal government, which can sell inflation-protected long-term bonds at an interest rate of only 1.04%, is not cash-strapped. It could and should be offering aid to local governments, to protect the future of our infrastructure and our children.
A well educated population and high quality infrastructure are crucial for the economic growth of a country. Emerging nations are making great efforts to upgrade their roads and their ports and their schools but America is going back.

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