Search This Blog

Friday, October 8, 2010

Unemployment numbers

Another 95,000 jobs lost last month. While the private sector did gain 64,000 jobs the public sector lost 159,000 as local and state goverments continue to cut expenses. That's 159,000 more people collecting unemployment, costing Federal and state governments some of those savings. That's 159,000 who will be cutting back on spending, which hurts the local economies and erodes their tax receipts.

Do people really think that cutting government spending at any level will help the economy in any way. I know much of it is unavoidable as reduced tax revenues, especially from property tax and sales taxes on the local level shrink cash strapped governments have little alternative.

On the Federal level, where the GOP says they want to slash spending, this can be avoided. But then for republicans, government employees at any level are a subspecies that leech off the system no matter what they do.

The bottom line is that job creation will not happen to any significant degree no matter what politices are enacted in a climate where additional spending of virtually any kind is a non starter. Any positive news on the private side will be offset by more and more government layoffs on all levels. If the GOP get their way, that will incease, especially at the federal level.

No comments: