Berkeley CSUA MOTD:Entry 54600
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2013/2/7-3/19 [Uncategorized] UID:54600 Activity:nil
2/7     Public sector cuts lead to higher unemployment:
        http://preview.tinyurl.com/ajog7fg
        \_ This can't be true, my libertarian friends told me that starving
           the beast would lead to greater prosperty for all.
            \_ No.  No they didn't.  (at least they didn't tell you that would
               happen in th short run, since nobody thinks that).
                -phuqm (a non-"starveTheBeast" libertarian.)
Cache (2535 bytes)
preview.tinyurl.com/ajog7fg -> www.nytimes.com/roomfordebate/2013/02/06/are-government-layoffs-the-problem/government-layoffs-are-a-major-cause-of-persistent-unemployment
post&posall=TopAd,Bar1,Position1,Position1B,Top5,SponLink,MiddleRi ght,Box1,Box3,Bottom3,Right5A,Right6A,Right7A,Right8A,Bottom7,Bottom8,B ottom9,Inv1,Inv2,Inv3,CcolumnSS,Middle4,Left1B,Frame6A,Left2,Left3,Left 4,Left5,Left6,Left7,Left8,Left9,JMNow1,JMNow2,JMNow3,JMNow4,JMNow5,JMNo w6,Feature1,Spon3,ADX_CLIENTSIDE,SponLink2&pos=TopAd&query=qstring&keyw ords=? with between 8 million and 9 million jobs needed to restore the labor-market health of December 2007 (the last month before the recession began). Public payroll cuts that exceed historical averages account for 26 percent of the 85 million jobs needed to restore economic health. by this point in the recovery after the 2001 recession, the public sector had added 437,000 jobs. And if public sector jobs had just remained at their average post-1989 share of the overall population (roughly 73 public employees per 100 members of the US population), we would have gained 600,000 public sector jobs by now. This 13 million "swing" in public sector jobs (721,000 jobs lost rather 600,000 gained) accounts for roughly 15 percent of the overall jobs gap. Private employers supply cars and uniforms to police officers and fire fighters and books and computers to public schools. As public payrolls are cut, this reduces demand for labor in private industries that supply public employees. Furthermore, as public employees are laid off, they cut back on their own consumer spending, which reduces demand in an economy that is already starved of spending. estimated that just under 07 private sector jobs are lost with every public employee laid-off. Given these influences, a safe estimate is that public payroll cuts in this recovery that exceed historical averages can account for 26 percent of the overall 85 million jobs gap. same wave of austerity that reduced public payrolls has also cut direct transfers to private-sector households. Adding these reduced transfers to the drag imposed by declining public payrolls means that each public sector job shed during this recovery has slowed private sector job growth by roughly 1:1. In this case, public cuts would explain about a third of the overall jobs gap. post&posall=TopAd,Bar1,Position1,Position1B,Top5,SponLink,MiddleRi ght,Box1,Box3,Bottom3,Right5A,Right6A,Right7A,Right8A,Bottom7,Bottom8,B ottom9,Inv1,Inv2,Inv3,CcolumnSS,Middle4,Left1B,Frame6A,Left2,Left3,Left 4,Left5,Left6,Left7,Left8,Left9,JMNow1,JMNow2,JMNow3,JMNow4,JMNow5,JMNo w6,Feature1,Spon3,ADX_CLIENTSIDE,SponLink2&pos=MiddleRight&query=qstrin g&keywords=?