Which means Republicans are patting themselves on the back. Retail sales – a key component of our economy – have dropped for three straight months now. These numbers suggest what most economists have been saying since day one – that this is a demand crisis since workers don’t have enough money in their pockets to spend – is true. On top of that, a new report by the Economic Policy Institute reveals that Republican austerity measures that have killed more than a million public sector jobs are also killing the private sector.
Looking at the economic multiplier effect, every single public sector job that is lost leads to a reduction in spending in the economy, and thus pain for the private sector. As the EPI concludes, “for every dollar cut in salary and supplies of public-sector workers, another $0.24 is lost in purchasing power throughout the rest of the economy…This means that the public sector being down 1.1 million jobs has likely cost the private sector 751,000 jobs.”
Unemployment would be a full percentage point lower – if not more – had it not been for Republican attempts to sabotage our economy. So remember, when Republicans talk about the bad economy – they’re bragging!