Sunday, July 8, 2012

Public Sector Cuts Stall Job Growth, But The GOP Doesn't Mind

The addition of 84,000 jobs to the private sector didn't budge the unemployment rate. Cuts in the public sector are the problem:

The U.S. economy continued to struggle in June, adding 80,000 net new jobs while the unemployment rate remained at 8.2%, the government reported Friday.

...The private sector created 84,000 jobs in June, but the total was brought down by continued cuts in government workforces, which lost 4,000 jobs last month, the Labor Department reported.

In June, President Obama urged Congress to pass his jobs plan and warned against severe cuts in government spending, stating, "The big challenge we have in our economy right now is state and local government hiring has been going in the wrong direction." Economist Paul Krugman also recommended that we "rehire the schoolteachers, firefighters, police officers who have been laid off in the last several years because of cutbacks at the state and local level."

Of course, the Republicans won't take this advice. Mitt Romney has stated that we don't need more firemen, policemen and teachers. Instead, he and his party will continue to support cutbacks in the public sector and oppose the president's jobs plan. As a result, the unemployment rate will not lower and the economy will continue to suffer–problems that the GOP will attribute to Obama as we head toward November.

No comments: