Third World America - Arianna Huffington [4]
Of course, it’s even worse than that. Beyond failing to make necessary investments for the future, we are actually cutting back on our current investment in people, with massive budget cuts in education, health care, and social services in state after state after state, all across America.
At least forty-five states have imposed budget cuts that hurt families and reduce vital services to their most vulnerable residents.8 Those affected include children, the elderly, the disabled, the sick, the homeless, and the mentally ill, as well as college students and faculty.
According to a report by the Center on Budget and Policy Priorities, at least twenty-nine states have made cuts to public health programs, twenty-four states have cut programs for the elderly and disabled, twenty-nine states have cut aid to K–12 education, and thirty-nine states have cut assistance to public colleges and universities.9
America’s states faced a cumulative budget gap of $166 billion for fiscal 2010.10 Total shortfalls through fiscal 2011 are estimated at $380 billion—and could be even higher depending on what happens to unemployment.
These are massive numbers.11 But when you remember that we spent $182 billion to bail out AIG ($12.9 billion of which went straight to Goldman Sachs), you realize that this amount alone would be more than enough to close the 2010 budget gap in every state in the Union.12 Toss in the $45 billion we gave to now-making-a-profit Bank of America and the $45 billion we gave to now-making-a-profit Citigroup, and we would be well on the way to ensuring that no state’s vital services are cut through 2011.13, 14
But instead that money has gone to the banks without any fundamental reform of the system, without any strings attached or edicts about how much they have to lend to help the real economy recover—or, indeed, without even having to tell us what they did with our money.
All across the country, the fiscal ax is falling. The devastation is in the details:
California is eliminating CalWORKS, a financial assistance program for families in need, a cut that will affect 1.4 million people, two-thirds of whom are children.15 This plan would also cut state subsidies for child care, affecting 142,000 children.
Minnesota has eliminated a program that provides health care to 21,500 low-income employed adults with no children.16
Rhode Island has cut health insurance for 1,000 low-income families.
Maine has cut education grants and funding for homeless shelters.
Utah has cut Medicaid for physical and occupational therapies, as well as for speech and hearing services.
Michigan, Nevada, California, and Utah have eliminated coverage of dental and vision services for those receiving Medicaid.
Alabama has canceled services that allow 1,100 seniors to stay in their own homes instead of being sent to nursing facilities.
Georgia has cut $112 million from an initiative designed to reduce the gap in funding between wealthy and poor school districts.
Arizona has cut cash assistance grants for 38,500 low-income families.
Virginia has decreased payments for people with mental retardation, mental health issues, and problems with substance abuse.
Illinois has cut funding for child welfare and youth services programs.
Connecticut has cut programs that help prevent child abuse and provide legal services for foster children.
Massachusetts is making cuts in Head Start, universal pre-K programs, and services to prepare special-needs children for school.
Keep in mind, all these services are being cut at a time when more and more people are finding themselves in need of them. It’s a perfect storm of middle-class suffering.
And yet the human consequences of the financial collapse are largely missing from our national debate. I’m referring especially to the people who had