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Wrong. Cut 1 million gov jobs and you will immediately lose 2 million additional private sector jobs because of the huge contraction in aggregate demand.
This is totally irrational since by your "logic", the more government employees we hire and increase taxes to pay for them, the stronger the private sector will be.
Since that is obviously nonsense, your statement is meaningless.
Hasn't the crux of the left wing rhetoric been that private sector jobs have been increasing for however long and that government losses were dragging the numbers? How can that be when state and local governments have cut close to 500k jobs since mid-2009 using your own logic about aggregate demand.
Private sector jobs are more sustainable and more productive then government jobs so in the long term the private sector will recover all the lost jobs.
In the short term though, the private sector will suffer if you cut government jobs in the current economy.
Perhaps their R&D investments and other actions providing tax credits was enough to eliminate their direct tax expenditures....duuuuuuhhhhhhh....
Perhaps due to increased productivity efficiencies captured by enhanced technology from investing in the firm, perhaps? Uhhhhhhhhh......
Ok, so who is going to create the jobs then? It used to be that GE would take that profit and reinvest it into the country by creating more jobs. Now they just take the profit and give it back to themselves in the form of higher dividends.
So duuuuuuuuuuuuuuuhhhhhhhhhhh, how do you get GE and other corporations to create jobs?
I think the OP has been smoking out of the wrong end of the peace pipe. Axing federal jobs will immediately result in 2x the private jobs?! Despite the silly notion that lower taxes will result in more jobs (I have been waiting for that since Reagan), it does seem like pulling the plug on federal jobs will have some negatives. Also, the federal employees are far more qualified than your average private person, so will likely outcompete them for many jobs in many places. Finally, many of the out of work federales will likely default on their mortgages as they reinvent their lives with lower salaries and less benefits. Does this all sound good?
As a federal employee, I will say the pay is solidly middle class (usually $40-120k for working class to senior management and science) and the benefits pretty good. I would like to bring all workers up to this level rather than dissemble the federal jobs, or give money to rich folks who already earn many multiples of this and may or may not provide jobs to Americans.
The main effect would be to depress wages in the private sector, as all those former government workers flooded into the marketplace.
I don't see how cutting federal jobs would prompt private employers to start hiring. Why would they? Companies take on new employees when they can make more money by doing so. Why would firing a bunch of federal employees lead to an increase in demand for goods or services? What is the mechanism that would cause this to happen?
Don't EVER post this again to this forum, if you aren't expelled by the far left moderators, then the far left psychotics will mercilessly attack you personally for posting such punishing facts.
How about some reputable links to back up these supposed "facts".......
Sounds like more Trickle-Down Economics to me and frankly I think the country is tired of being pissed on!!!!!
Ok, so who is going to create the jobs then? It used to be that GE would take that profit and reinvest it into the country by creating more jobs. Now they just take the profit and give it back to themselves in the form of higher dividends.
So duuuuuuuuuuuuuuuhhhhhhhhhhh, how do you get GE and other corporations to create jobs?
Do you understand what an economy is?
If they are just pushing dividends back into the hands of the shareholders - who are those shareholders?
Could any of them be small business owners who have lots of GE shares, who could then turn around and put those dividends back into their businesses?
Or could they be retirees or general consumers who would then in turn spend the dividends on products, driving up demand?
I think the OP has been smoking out of the wrong end of the peace pipe. Axing federal jobs will immediately result in 2x the private jobs?! Despite the silly notion that lower taxes will result in more jobs (I have been waiting for that since Reagan), it does seem like pulling the plug on federal jobs will have some negatives. Also, the federal employees are far more qualified than your average private person, so will likely outcompete them for many jobs in many places. Finally, many of the out of work federales will likely default on their mortgages as they reinvent their lives with lower salaries and less benefits. Does this all sound good?
As a federal employee, I will say the pay is solidly middle class (usually $40-120k for working class to senior management and science) and the benefits pretty good. I would like to bring all workers up to this level rather than dissemble the federal jobs, or give money to rich folks who already earn many multiples of this and may or may not provide jobs to Americans.
It is a long-known fact the higher taxes driven by high government spending will crowd out private sector expenditures, weakening / stifling the private sector economy leading to stagnation. States like NY, IL and CA are perfect examples, as is Greece.
Substantially reducing the government work force would be a good thing both short and long term, especially if the cuts in taxes that would have paid for those employees were directed to the middle/upper middle class.
I don't see how cutting federal jobs would prompt private employers to start hiring. Why would they? Companies take on new employees when they can make more money by doing so. Why would firing a bunch of federal employees lead to an increase in demand for goods or services? What is the mechanism that would cause this to happen?
The added money in the pockets of middle class consumers from reduced taxes would be spent on consumer goods, driving business and increasing sales for private sector businesses - which would lead to more hiring to account for the increase in sales...
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