Saturday, July 9, 2011

Dragging the Economy Down

Yglesias:
For a while temporary census-related jobs masked the underlying trend, but we’ve been steadily shedding government work. Maybe you think that’s a good thing. Certainly most of President Obama’s critics from the right claim to believe it’s a good thing. But what happens when you shed public sector jobs amidst an already weak economic climate is the sharply reduced incomes of the former teachers and whatnot lead to them spending less in their local communities.
Republicans are idiots.  Cutting all these government jobs is going to drag the economy back into recession.  They claimed that uncertainty about tax rates prevented private businesses from hiring (false).  Now the Bush tax cuts are in place for two more years, still not much hiring.  Now they are threatening to default on the debt if they don't get more government cuts without raising tax revenues.  So they are pushing to further weaken the economy, pushing us toward another depression, while creating even more uncertainty to prevent the creation of jobs.  Their solution: more tax cuts, less government spending and fewer regulations.  All things which will make our problems worse.  The GOP is worthless. 

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