by Jeff Woods
The news flash from University of Tennessee economists in this morning's headlines: Damn, we're in a tight spot!
Tennessee's economy will shrink for at least the next six months, the University of Tennessee's Center for Business and Economic Research said in its annual report, released Tuesday. "Unfortunately, there is no sign of a bottom to the current cycle," researchers wrote. "To the contrary, by all accounts economic conditions are deteriorating at a more rapid pace."
"Tennessee's fate depends on the path taken by the global and national economies in the months ahead," the report said. "Unfortunately, there is no sign of a bottom to the current cycle."
The state's economy is headed in the wrong direction, and it will get worse before it gets better. That's the assessment from University of Tennessee economists in an annual report issued Tuesday. Prepared by UT's Center for Business and Economic Research, the report to Gov. Phil Bredesen had a slew of bad news in sectors including housing, employment and personal income, and said, "At this date, there are simply no signs whatsoever that economic conditions have bottomed out."
Did you get the point about how our misery is bottomless?
Expect it to get worse long before it gets better--that's the upshot. We can't emphasize that enough. Oh yes, we almost forgot. We may need a tax increase to keep paying unemployment benefits to all the laid-off workers.
"You still have a billion dollar loss in state revenue that will have to be made up. It gives more time to think about what types of reductions and how you would go about reaching that lower expenditure level, but I also don't think that the economy is likely to recover enough to replace that billion dollar loss between now and two years."Mental health experts are worried that we're all going to start committing suicide. To push you over the edge, there's this headline: "Tennessee's Beer Tax Is Nation's Highest."