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Home Publications Blogs Beat the Press The NYT Puts Its Desire for Public Sector Workers to Take Pay Cuts in Its News Section

The NYT Puts Its Desire for Public Sector Workers to Take Pay Cuts in Its News Section

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Monday, 21 February 2011 07:50

A NYT article on President Obama's relationship with unions in Wisconsin referred to the "need for public employees to sacrifice." There is no "need" for public sector workers to sacrifice.

As virtually all economists acknowledge, the economy's current problems stem from a lack of demand. If there were more demand, then the economy would grow more and it would generate more jobs. If public sector workers "sacrifice" by accepting cuts in pay and benefits then they will have to cut their spending. This will mean less demand, less growth, and fewer jobs.

For this reason, there is certainly no "need" for public sector workers to sacrifice. The NYT and others may feel better seeing them take cuts in pay, but this has nothing to do with the needs of the economy.

Comments (8)Add Comment
...
written by skeptonomist, February 21, 2011 9:00
The need for state governments to cut back would be much less is they could tap into the obvious source of funds: corporate profits. Profits have been at incredible levels since 2002 and are not being used for capital investment or hiring.

Some cooperation among states might be required, but who knows, if some states instituted corporate income taxes others might follow; people can usually be depended on to follow the leader. Right now they are following each other in going after unions.
Dean, Saw You on CNN yesterday .....
written by Jim In Panama, February 21, 2011 9:10
...with Ali Velshi, Christine Romans, Gloria Borger and Pete Dominick. That was some hard sh#t to watch. Didn't you have something better to do, like I dunno, sleep in maybe .... or floss your teeth? Well, anyway if you didn't mind hanging out with that crew, I could use some baby sitting services at MY house this weekend
only the needy need
written by frankenduf, February 21, 2011 9:19
wonder if the nyt referred to the 'need for people who make $450 K to sacrifice' in the runup to cutting (!) their taxes- but there is an irony here that is only partially joking- that is, in absolute economic terms, only the working class can possibly sacrifice, as our stratified distribution has left the wealthy insulated from any of the real harm that the working class actually suffers
No demand
written by Dave, February 21, 2011 12:57
There is no demand, because the Oligarchy has all the money and we have no jobs and alot of debt.
How is that?
written by Floccina, February 21, 2011 2:39
Had Governments seen the housing bubble they would not be having a short fall.
Iron Heel
written by bkm817, February 21, 2011 4:33
President Obama is the 80,000 pound trojan horse in the room.
...
written by Calgacus, February 21, 2011 8:01
There is no "need" for public sector workers to sacrifice.

What!! Of course there is a need. Do you want the Sun of Free Enterprise to go out? The Lesser Priest, the tlamacazqui Scott Walker must grant his flock of public sector workers the honor to be led up the steps of the Wall Street Pyramid. At the top, the Supreme High Priest, the Tlatoani Lloyd Blankfein must do his god's Huitzilopochtli's work on them and their mortal remains.
Nixon did it Right: Revenue Sharing w/States
written by Paul, February 21, 2011 8:52
If the federal government would bail out the states like it did Wall Street banks and the auto industry, the economy would be well on its way to recovery. Instead, we are mired in deficit hysteria that has no relevance to the facts.

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About Beat the Press

Dean Baker is co-director of the Center for Economic and Policy Research in Washington, D.C. He is the author of several books, his latest being The End of Loser Liberalism: Making Markets Progressive. Read more about Dean.

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