| Tyrone Slothrop |
10-08-2010 02:55 PM |
Re: Election 2010: Teabaggin' the Ds & Rs
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Originally Posted by Cletus Miller
(Post 435226)
So, you lay them off next year?
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If necessary, yes. State revenues are often highly cyclical, so the hope is that you don't need to do that because the economy comes back.
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And what about the added year of pension accrual?
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If that's a cost, and it is, then the state should budget appropriately when it decides how many people whom it otherwise would fire need not be fired thanks to the federal aid.
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Many state governments need (desperately) to right-size. Yes, right now isn't the best time to do so, at least from an employment perspective. But, given the dynamics of politics and public employee unions, the only time you can get the staff reduction in is when the budget is upside down, which generally only happens in a recession.
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From a macroeconomic perspective, it's the very worst time to do it.
eta: People don't see the harm in having all these workers and factories doing nothing. It's huge. Instead there's this myopic notion that government spending is bad because it displaces private spending. Ordinarily it does. But not now!
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