That is the question I had after reading Michael Mandel's article on the declining private sector job growth over the past decade. Here is the money graph (click on figure to enlarge):
Mandel goes on to show that most of the employment growth came from government or government-supported private sector jobs. Wow!
Mandel goes on to show that most of the employment growth came from government or government-supported private sector jobs. Wow!
Let's see if I got this straight. I'm not an economist, just interested.
ReplyDeleteThe tech bubble burst in 1999-2000. The fed with low interest rates, the credit bubble in housing created growth in the economy, allowing state and federal to increase payrolls. In addition to tax cuts and government borrowing which would have some stimulative effect.
This is troubling. Is this another instance where the tools of public policy have blown their wad? Deficit spending, very low interest rates, and now an already high level of public employment.
Hmm.
Derek