Via
Jared Bernstein's blog, we have an
EPI analysis of BLS jobs data.
This is very striking, but not shocking at all: cutting public jobs meant that the economy as a whole suffered, by way of downward pressure on the recovery. In other words, total GDP = private+public = total demand for goods and services. If you cut public jobs, you cut total demand, which leads to cuts in private sector jobs.
So when is the austerity-as-economic-certainty-and-growth supposed to kick in?
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The bounce back from the last recession is middling. |
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Private sector jobs responded at almost the same pace as 1990. |
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But what's holding back the total economy is public-sector jobs, which are steadily being cut. |
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