Pushing austerity at both the state and federal levels

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When you hear Republicans yell about how President Obama is expanding the size of government – they’re either lying or they’re uninformed. According to new numbers released by the Labor Department, government employment is now at its lowest level since 1968. In other words, government is smaller than it’s ever been in nearly a half-century.

That has a lot to do with Republicans pushing austerity at both the state and federal level – laying off hundreds of thousands of public workers since President Obama took office in 20-09. Just last month, 9,000 government workers lost their job in addition to the 680,000 government workers who’ve been laid off over the last three years – the worst three years for government employment in history.

Unlike Presidents Bush and Reagan who INCREASED government employment to fight back a recession, President Obama has been forced by Republicans to cut government employees – which is hampering any sort of robust recovery.

Thom Hartmann Administrator's picture
Thom Hartmann A...
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Dec. 29, 2009 9:59 am

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A solution to this is to create a 60 trillion dollar coin and deposit at the federal reserve and solve the deficit "problem" once and for all (at least for the next 15 years) during which people can learn MMT! The concept is explained in

http://www.dailykos.com/story/2012/08/05/1117021/-The-60-Trillion-Petiti...

and

http://my.firedoglake.com/letsgetitdone/2012/08/05/the-60-trillion-petit...

The best thing about this is Obama can do it without the road blocks by congress by executive privilage.

pshakkottai's picture
pshakkottai
Joined:
Jul. 11, 2011 10:27 am

That can be done as long as government doesn't spend more into the economy than the productive capacity can support.

During the so-called debt debate, the Treasury, using its Constitutional authority, could have simply issued a few trillion dollar coins, and handed them over to the Fed's vaults to retire U.S. debt held by the Fed, That debt would have been abolished. Republicans couldn't have held the nation hostage to increase the debt ceiling.. Debt would have been reduced.

World class economist Michael Hudson, among others, proposed it. The neo-liberal twit in the White House chose to ignore them.

What works came to the usual dead-end.

Austerity seems to be the chosen course. Close the libraries, turn off street lights, fire government employees, throw the nation into a spiral of less and less consumer demand....and fewer and fewer jobs per capita to support the lessening demand.

Tax revenues plunge accordingly.

Retired Monk - "Ideology is a disease"

polycarp2
Joined:
Jul. 31, 2007 3:01 pm

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