In its story about today’s ghastly jobs report, the New York Times noted that local governments last month cut 28,000 jobs, and have cut 446,000 in all since September 2008. These governments did so to meet budgetary requirements that were not met (except in a few places) by higher taxes on the wealthy.
Republicans in Washington are now demanding cuts of as much as $2 trillion over the next decade to meet national budgetary requirements. Cuts of this magnitude will not be lessened, they make clear, by increased taxes on the rich, on trustafarians, or on Wall Street.
Consider now. If state and local governments cut 446,000 jobs in less than three years by reducing their spending in lieu of any tax increases, will far, far greater federal cuts over 10 years not take an even greater toll on the job market? As another possible guide here, you might look at what austerity cuts have done to employment in Spain, Greece and Ireland.
Or…you might totally ignore the obvious and clearly demonstrated conclusions about employment to be gleaned from the real world, and instead consult your copy of “Atlas Shrugged” to see another possible outcome. While doing do, be sure to make the sign of the dollar as you giggle your way down the rabbit hole.
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