Saturday, September 8, 2012

The Jobs Reality Nobody Seems to Know


Two charts from Krugman today:

Does anyone realize this?  Let's look at it this way: our policy makers can only directly control public spending, whereas private spending they can only affect indirectly.  So on the direct side, our elected officials have responded to the Great Recession by cutting government jobs.  Either because of that, or for reasons unrelated, private sector job growth has been just fine, in fact better than it was following the last recession. 

I want to stay away from giving President Obama all the credit or all the blame for any of this; one of the big problems we have in analyzing what's happening is that the House has been Republican since early 2011.  And they've gotten what they've demanded: fewer government jobs.

And one can make an argument that it's working- private sector growth is continuing, albeit at a slow pace.  So if we want to increase the pace of private sector growth, does that mean we need to keep cutting government jobs?  Or will hiring back some teachers and cops help more?  I guess that's open to debate, but I'm betting on the latter.

But what you can't really do is blame liberals for failing to return us to full employment when we've had conservative policies in place.
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1 comment:

  1. Boston RonSeptember 13, 2012 at 7:15 AM

    Chicago Teachers Strike
    After a long day of talks that ended around 11:30 p.m., Lewis said the system’s offer on teacher evaluations, a key stumbling block, had improved to the point that “I’m smiling. I’m very happy.’’

    She should be happy. Before the strike the average teacher earned almost twice what the parents of their students earn. It's going on all over America. Teachers Unions vote Democrat, Democrats give them whatever they want. Heck,,it's our money they're spending. It's the most successful vote getting program since the days when threats and intimidation was used. Teachers Unions and American Federation of State, County and Municipal Employees (AFSCME) all negotiate their contracts with the Politicians they $$$ support!

    Think about it.

    Suppose you wanted a raise. If you worked in the "Private Sector" you would be asking a person who must consider the profitability of the company. If you were helping the company achieve that goal you are likely to get a raise. Losing you would be a loss to the company.

    Suppose you were a Teacher or a member of AFSCME. These people work in the "Public Sector". They are paid by the money taken out of your paycheck. Their Union Bosses sit across a table in a smoke filled room with Politicians and make a "Bargain". You do me,,and I'll do you. There is no need to worry about profit, the well they pick from is filled with our money, not theirs. It's all smiles and back slapping as they sip their drinks.

    So,,Ms. Lewis in Chicago is smiling,,she's happy, the Union is Happy, the Teachers are Happy,,but the Students and their Parents are UNHAPPY!

    How long will we put up with this disgraceful, Budget Busting Behavior?


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