Target Wall Street Greed, Not Public Employees

[Omaha Steve]

http://blog.aflcio.org/2010/08/30/target-wall-street-greed-not-public-employees/

by Tula Connell, Aug 30, 2010

Too often when economic times get tough, scapegoats are found in the wrong places. Wall Street greed and double-dealing sparked much of the nation’s recent near-financial collapse, yet many in the chattering classes instead are attacking public employees for this rolling recession.

Economist Dean Baker puts the situation in perspective:

Fifteen million people are not out of work because of generous public employee pensions. Nor is this the reason that millions of homeowners are underwater in their mortgages and facing the loss of their home. In fact, if we cut all public employee pensions in half tomorrow, it would not create a single job or save anyone’s house. The reason that millions of people are suffering is a combination of Wall Street greed and incredible economic mismanagement.



Even as a consensus is emerging among economists that the United States should put job growth ahead of deficit cuts, a new study focused on New England finds that the region no longer can afford to spend scarce resources on tax credits and other business giveaways. Instead, it needs to channel economic development efforts to rebuilding neglected infrastructure and improving education for people at all levels. “Prioritizing Approaches to Economic Development in New England” provides

ample evidence that infrastructure (roads, bridges, dams, energy transmission systems, drinking water, and the like) and education are effective approaches for creating jobs and generating economic growth.

The study, by the Political Economy Research Institute at the University of Massachusetts-Amherst, finds the New England states have too long viewed funding for public services and economic development as competing interests—and that’s a false dichotomy. Sounds like the study can apply to the rest of the country as well.

FULL story at link.

[ClassWarrior]

1. Looks like the unrec patrol is out tonight.

The trolls are defending their Wall Street overlords.

:puke:

NGU.

[Bonhomme Richard]

2. The only outcome of going after public employees is going to be

even more people with uncertain futures and less money to spend.
I don't begrudge them for making the pay and benefits that all americans should be getting and I remember when public employee pay was way below the private sector. Of course that was before the Reagan revolution which targeted unions and allowed private sector pay to go into the dirt. They are only coming after what they missed then.