The latest data from the US Census Bureau show that most states are losing tax revenue as the economy continues to show signs of a prolonged recession if not depression. This is April data, so it’s just the beginning of the lock-down. Since most states must balance their budgets by law this presents a giant problem for President elect Biden who is inheriting a giant problem and deficit from the Covid-19 denying and welfare for the rich policies of the defeated, vindictive president.
The challenges will exist in the auto industry since vehicle affordability is once again becoming a problem for the working class as the economic carnage continues. Raising taxes on the middle class is not a viable option. A federal bailout or large assistance program for states appears likely. Senate Majority leader McConnell – aka Moscow Mitch – has a sure-fire way to create another great depression – let the states go bankrupt while Trump eats cake- and crow in Mira Largo.