In spite of Florida’s Stimulus money for recovery, Palm Beach County, Florida, found itself with 2400 fewer government workers last year, as reported by Florida’s Economic Opportunity Department; who recently released these employment figures. Job cuts and property tax collection shrinkage, as well as the decline of home values, has affected the economy in a drastic way, dragging down the recovery and causing shrinkage in capital projects. Federal stimulus money was infused into the economy statewide to the sum of about two and a half billion, yet the decline was not slowed much, and these funds have dried up.
Economists theorize that with local government being forced to scale back in lieu of the end of the stimulus, inadvertent damage is done, and the government cannot take complete blame. Other groups, like Wells Fargo, say that the cutbacks forced governments to adapt more frugal spending habits after years of being frivolous and spending rampantly like plantar fasciitis without much regard. Unfortunately, job and economic growth was affected and this out of control spending now tempered with the current cutbacks will likely do more harm than good; most certainly it will not serve to help the economy much at all.
Regardless of the boost in growth that lasted for 2 years the fourth quarter GDP measure from 2011 measured in at 2.8%, which was lower than expected. Consumers spent money during the holiday season in December as the inventories were boosted by merchants, but the monies were not spent as freely as previous years and resorted to tapping into their savings accounts and utilizing the 2 percent personal consumption gain.
In 2005, Governments overall consumption was found to topple down to at least 7.3 % since the third quarter, but consumption has been decreased over the course of subsequently 6 quarters and the better part of the past three years. This spending could likely influence a quarter of the difference responsible for the entire nation’s growth rate during the next two years or so. Growth rates have been predicted to be as low as below 3% this year alone.
While Florida’s stimulus recovery money seemed to patch the gap in the economy at the time, in its absence, Government is now forced to make daunting decisions in regards to budget cuts and balancing a reasonable State budget. It must take up the reigns and temper itself with more prudent and responsible spending habits. Such an endeavor takes time, and everyone must be on board, members of government and the constituents. In this way, everyone shares the responsibility of getting back on track to restoring a viable and thriving economy.