http://www.politicsinvivo.com/2011/07/the-deficit-is-not-a-real-problem-and-a-note-of-support-for-keynesian-stimulus/ Political and Cultural Commentary, and Whatever Else... Fri, 01 Mar 2013 22:46:14 +0000 hourly 1 http://wordpress.org/?v=3.0.4 http://www.politicsinvivo.com/2011/07/the-deficit-is-not-a-real-problem-and-a-note-of-support-for-keynesian-stimulus/comment-page-1/#comment-20121 Economist Tue, 12 Jul 2011 22:01:10 +0000 http://www.politicsinvivo.com/2011/07/the-deficit-is-not-a-real-problem-and-a-note-of-support-for-keynesian-stimulus/#comment-20121 I think you make a really good point about private sector versus public sector job growth. It would be interesting to see the data on the relative makeup of those two. A simple case could be made that if private sector jobs are growing and public sector jobs are shrinking it's hard to see how spending cuts (which will largely put people like teachers and other public sector workers on the unemployment roles) make sense. It's hard to believe that the increase in private sector jobs will more that outgrow the further reduction in public sector jobs. I recall a rule of thumb that each job prevented from being lost is worth much more than a new job created in terms of economic growth. I think you make a really good point about private sector versus public sector job growth. It would be interesting to see the data on the relative makeup of those two. A simple case could be made that if private sector jobs are growing and public sector jobs are shrinking it’s hard to see how spending cuts (which will largely put people like teachers and other public sector workers on the unemployment roles) make sense. It’s hard to believe that the increase in private sector jobs will more that outgrow the further reduction in public sector jobs. I recall a rule of thumb that each job prevented from being lost is worth much more than a new job created in terms of economic growth.

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