This paper uses variation across states to estimate the number of jobs created/saved as a result of the spending component of the American Recovery and Reinvestment Act (ARRA). The key sources of identi cation are ARRA highway funding and the intensity of state sales tax usage. Our benchmark point estimates suggest the Act created/saved 450 thousand government-sector jobs and destroyed/forestalled one million private sector jobs.Does this surprise anyone? Honestly? Nearly half a million government jobs were created or saved; as many as one million private sector jobs were lost. Gee, the Leviathan grows, and the public sector takes it in the shorts. Hope that Change tastes good.
It's ingenious, it really is. The number of folks employed by the government grows by leaps and bounds, and states get even more dependent on the flow of federal cash. We're seeing the start of the problems now, with states seeing significant budget shortfalls looming as the Federal firehose slows to a trickle. Of course, rather than adjust the budgets accordingly, they'll just clamor for more FedGov $$$, which will necessitate even more .gov drones...
How's that expression go? The government will never solve a problem that will put it out of business...
That is all..
3 comments:
...and anyone who has even a passing familialarity with Goverment "Accounting" knows there is a long standing tradition of useing "one time" money to fund long term commitments. If you ran a private sector firm useing the same acounting practices as most States, cities and towns, you would be in jail for a 1,000 years.
I believe it.
The only area in my building with more - not fewer people, the IRS office down the hall. They camp out there to make sure they are getting their 39.5%.
Bad news guys, it's 39.5% of less this year.
And people wonder why the economy is collapsing. Government borrowing, money printing, and spending continue unabated while the average American gets squeezed.
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