Economy: U.S. Jobs Time Bomb
November 20th, 2009
Hello team ~
I realize I'm a "no-name" economist and few people take me seriously but
I promise I have been doing my homework. As you know I am fighting to
stop state jobs losses and pay cuts. Most politicians do not understand
the Great Depression and thus fail to recognize we are facing a similar
crisis in DEMAND.
When the private sector has crashed this completely, only the government
can "prime the pump" and rejuvenate consumer and business spending.
There is no other known remedy. The paradox today is our federal
government is trying to stimulate the economy while nearly 50 state
governments are reducing spending. One hand is lifting while 50 are
pushing down.
Other leading experts are finally adding to my call. Please read the
cited article below and help me wake up our officials. We aren't simply
fighting for our pay; we are fighting to save the private sector - we
are all in this together. Here's the simple economic math:
"... for every dollar of [state government] budget cuts, more than half
the jobs and economic activity lost will be in the private sector."
"... nearly one-third of state spending goes to public provisions such
as infrastructure, which is usually awarded to private contractors ..."
In the NCCI forum this week, Raji and Maggie reported that Contracting,
thus far, is down 20 percent. State government must begin awarding
contracts and the initial stimulus money must come from the federal
government. If we do not secure jobs as well as pay levels and begin
awarding new contracts I dare not say what will happen but it will look
something like "Nightmare on Main Street."
State, local budget cuts a "time bomb" for U.S. jobs
http://news.yahoo.com/s/nm/us_usa_economy_states_jobs
In unity ...
*****
Scott Goold, Economist
Workers' Compensation Administration
State of New Mexico
(505) 841-6896
