Destroying Employment In Order To Save It?

The Mellon Doctrine - NYTimes.com:

by Paul Krugman, 3/31/11

If you have a decent public sector job, it seems that it's better to lay you off and drive you into the private labor pool...

"...Two weeks ago, Republican staff at the Congressional Joint Economic Committee released a report, “Spend Less, Owe Less, Grow the Economy,” that argued that slashing government spending and employment in the face of a deeply depressed economy would actually create jobs... Here’s the report’s explanation of how layoffs would create jobs: “A smaller government work force increases the available supply of educated, skilled workers for private firms, thus lowering labor costs.” Dropping the euphemisms, what this says is that by increasing unemployment, particularly of “educated, skilled workers” — in case you’re wondering, that mainly means schoolteachers — we can drive down wages, which would encourage hiring."

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Posted by Chuck Bell at 5:36 AM