(When it comes to policy and economics, it seems the only “invisible hand” is the one holding the fact sheet that is invisible to those elected to set policies. – promoted by Caoimhin Laochdha)
This graphic says it all:
Source: ThinkProgress
The more a state cuts spending, the more jobs lost in that state.
It IS actually that simple.
Despite the nonsensical claims from the proponents of “cut everything always,” government DOES create jobs – both directly (when you work for the government, you have a job and your employer is the government) and indirectly (when money is flowing into the local economy, it enables businesses to hire).
More than 98% of all businesses in the US are small businesses (PDF of stats from Small Business Association).
Those small businesses usually operate within state lines – they are neither national companies nor multinational behemoths. These small businesses are the bread and butter of the economy. They account for most of the jobs, and 50% of the GDP.
And now, after 30 years of running scared from the dreaded “t” word (thank you, Ron Reagan!), it’s been amply demonstrated that those cuts destroy local economies – by both directly and indirectly slashing jobs.
It’s time to stop running from the cut-mongers. They either have no idea what they’re talking about, or, worse, know exactly what they are doing, but have evil intentions.
We need some grown-ups to stand up and say “enough.”
Bernie has made a good start.
I hope to start hearing echoes of his common sense from leadership everywhere.
or double dip? With bigger job cuts at the state level, apparently the recovery slows to a snails pace.
http://www.reuters.com/article…
I think a relevant point is: we want more private sector job growth. Public sector job growth is unsustainable. In full disclosure, I am a public sector employee. But we can’t all be net takers from the tax pool.