Government at all levels must reduce spending to meet available revenues. Unfortunately, government tends to cut in all the wrong places.<quoted text>
The financial crisis and resulting recession brought record-breaking declines in state revenues; the primary response to the hole blown in state budgets was deep cuts in education, health, human services, and other areas. Cuts of this magnitude are job killers. They directly eliminate jobs in both the private and public sectors, and indirectly cost additional jobs by reducing consumer buying power. In these ways, excessively large spending cuts make recessions deeper and longer than they would be otherwise.
Here’s how the economic damage from spending cuts happens: when lawmakers cut services they end contracts with private sector businesses and reduce spending on private sector goods, leading to layoffs or lower wages among private sector workers. When lawmakers cut services they also lay off teachers, firefighters, police officers, and other public sector workers (over 650,000 state and local government workers have lost their jobs since the recession hit the states). In turn, private AND public sector workers who are laid off, or who see their pay reduced, buy less and further reduce economic activity.
Deep cuts to state services also erode the foundations of a strong economy, in both the short and long term. Spending on education, transportation, and public safety has been shown to stimulate economic growth in the short run and is among the most important determinants of economic growth and job quality in the long run. Research also shows that expanding and improving upon these investments through well-targeted tax increases (in other words, finding new money to pay for better services) stimulates income and job growth.
more stuff FOX has never heard of.
In addition, government pensions are a time bomb that will explode on future generations, a prime reason for contracting out as many services as possible.
Perhaps, in tough times, government employees should consent to pay freezes and/or pay cuts to maintain employment levels, regardless of any contracts.
Just like those in the private sector.