Robbing Peter, Not Paying Paul

Nevada has borrowed a total of $331 million to pay for unemployment benefits as of March 31, according to Cynthia Jones, administrator of Nevada’s Employment Security Division. The loans have been taken out in order to deal with the swelling numbers of unemployed Nevadans during the current financial crisis.

States keep borrowing money, hoping the interest on those loans will be waived, yet no one seems to be doing anything to actually solve the unemployment problem. Maybe they will try selling Ferrari parts next?

The state borrows, people finally get jobs, citizens and employers are charged more taxes (to pay for the loans), employers lay off citizens because the costs are too high, and round and round we go.