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More evidence that austerity doesn’t work

The latest issue of the NC Budget and Tax Center’s Prosperity Watch is out and it provides additional confirmation that government austerity ain’t what is needed to get the economy going.

“Recent trends in the national labor market demonstrate the harm inflicted on the economy by cutting government spending and laying off government employees in the middle of an already challenging economic recovery.  Just as with private sector layoffs, government layoffs increase the number of people out of work.  And given that there are already nearly three times the number of people looking for work than there are job openings, these public sector layoffs only serve to increase overall unemployment.”

Read the entire story by clicking here.

14 Comments

  1. Alex

    August 15, 2012 at 4:39 pm

    According to an AP story today, this is the worst economic recovery since World War II— there’s your major problem ! Make work jobs funded by borrowed money is not the answer. We’ve already tried that before.

  2. Greg Flynn

    August 15, 2012 at 5:34 pm

    Let’s share that whole AP article with the rest of the class, shall we?

  3. david esmay

    August 15, 2012 at 6:28 pm

    Alex, like it or not, every time the repubs sent us into recession, Democratic Keynesians pulled us out. Since Truman, Democratic Presidents have had 12 months of recession compared to 100 months for repub presidents.

  4. Frances Jenkins

    August 15, 2012 at 6:49 pm

    So Golden Egg Educated boys, what is the answer? For two years the nation had a Democrat President, Senate and House. That has has not worked out for us. I cannot wait for an answer as to your solution.

  5. Alex

    August 15, 2012 at 7:11 pm

  6. Doug

    August 15, 2012 at 7:25 pm

    This piece really tickles me when you talk about austerity because there hasn’t been any at all . We’re spending $1.3 Trillion more than we’re taking in, we’re borrowing 40 cents of every federal dollar, and we’re furiously printing phony money to buy our debt off the books.. I would love for someone to explain how this is austerity.

  7. Greg Flynn

    August 15, 2012 at 9:38 pm

    Read the article:

    In short—and contrary to the beliefs of the proponents of austerity economics—increasing unemployment through government layoffs does not reduce unemployment.

  8. Alex

    August 16, 2012 at 6:21 am

    Read the newspapers :

    Why are the European nations in so much economic trouble ? Too much spending , and too much borrowing will eventually destroy a nation. Case closed.

  9. Joe

    August 16, 2012 at 7:04 am

    If the government had any money, maybe keeping or expanding government jobs would help, temporarily, to stabilize the economy. But governments grew too fat and happy during the good times and left themselves no reserves for the bad times. Taking more money out of the private sector, reducing job creation there, to fill it with government non-workers makes no sense.

    Besides government workers produce nothing, they only drain the economy they do not enhance it. Only because of the flawed GDP measurements, which has been shifted to focus primarily on consumption and government spending, rather than actual production, does it even appear to the casual observer to make sense.

    It is time for America, to wake up and realize that government cannot solve the problem, but is in fact the source of the problems. It is time to take back our birthright of being rugged individualists and solving problems on our own, NEVER considering to look to the government for a solution.

  10. Alex

    August 16, 2012 at 8:03 am

    You said it very well Joe ! Less government is better government.

  11. david esmay

    August 16, 2012 at 9:23 am

    Our situation is completely different from most of Europe because we have our own currency, which means, unlike the EU we are not tied the fortunes or misfortunes of other nations as they are, we also have by far the largest economy in the world. Joe/Alex, if that’s the Con argument why has every repub administration increased the size of government, gov. bush to the tune of 115%. How about supporting your facts with FACTS, and not lame assed Irving Krystol talking points. Most of those government jobs lost we teachers, police, and fire fighters. You want to be, and this is laughable, a “rugged individualist”, go live off the land while the rest of us live in the 21st century, this hasn’t been a frontier society with a population of two million in about 250 years.

  12. david esmay

    August 16, 2012 at 9:46 am

    Once again Doug, what is driving spending? Why it’s lost revenue from massive tax cuts, two unfunded Bush wars, Medicare part D, Bush recession, TARP, interest on debt accumulated during Bush, all mandatory spending. Discretionary, which is easier to control has been reduced. Bush programs are what’s driving spending and Ryan voted for everyone of them.

  13. frances

    August 16, 2012 at 7:13 pm

    I’m having a lot of trouble following your logic david !

  14. Doug

    August 17, 2012 at 6:22 am

    That’s an easy one frances……there isn’t any logic.