Obama: Economy ‘much better off’ with more government workers

Obama-Jobs

When speaking of his plans to jump start the economy Tuesday at the Amazon Fulfillment Center in Chattanooga, Tenn., President Obama said “the economy would be much better off” if only we had more government workers.

“If those layoffs had not happened, if public sector employees grew like they did in the past two recessions, the unemployment rate would be 6.5 instead of 7.5,” Obama said according to the White House. “Our economy would be much better off, and the deficit would still be going down because we would be getting more tax revenue.”

Obama’s economic reform package included corporate tax reform, increased “investments” in infrastructure, greater education spending, public-private partnerships and rolling back the sequester.

These are things we’ve all heard before. Corporate tax reform sounds great and is sorely needed. But under this administration, it usually means higher — not lower taxes at a time businesses can least afford it.

Infrastructure investments is nothing more than “Stimulus 2.0” with a new name.

Increased education at a time when enrollments are down make no sense. Just ask the school boards of Chicago, Detroit and Philadelphia.

Public-private partnerships? Business doesn’t want a partnership with government so much as they want to be left alone.

As for the sequester, the president offered, “Instead of using a scalpel to get rid of programs we don’t need and keep vital investments that we do, the same group has kept in place this meat cleaver called the sequester that is just slashing all kinds of investments in education and research and our military.”

This “same group” the president referred to are the House Republicans who were were only too willing to excise with “a scalpel” unneeded programs. But a deal takes two parties, and the president was that other party.

“Yet all the things that are needed to make this country a magnet for good middle class jobs, those things are being cut. These moves don’t just hurt our economy in the long term. They hurt our middle class right now,” he said.

The sequester, which went into effect March 1, does not represent a cut in spending, but rather a cut in spending increases.

“Over the past four years, another 700,000 workers at the federal, state and local levels of government lost their jobs. These are cops and firefighters,” Obama said. “About half of them are people that work in our schools. Those are real jobs. It doesn’t help a company like Amazon when a teacher, cop or a firefighter loses their job. They don’t have money to place an order. That’s hundreds of thousands of customers who have less money to spend.”

Obama then noted the phenomenal growth while coming out of previous recessions.

“If those layoffs had not happened, if public sector employees grew like they did in the past two recessions, the unemployment rate would be 6.5 instead of 7.5,” Obama said. “Our economy would be much better off, and the deficit would still be going down because we would be getting more tax revenue.”

Merely hiring new public sector employees isn’t the answer, and it wasn’t what led to the meteoric growth coming out of former hard times.

Brit Hume said recently, “Republicans tend to worry about the health of the goose, Democrats about the distribution of the golden eggs.” There can be no public employees without a healthy private sector to pay for them.

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About Michael Dorstewitz

Mike has been with BizPac Review almost from the beginning. Follow him on Twitter at @MikeBPR.

  • janice kraczon

    OMG this idiot never learns…..And unfortunately WE are the ones paying for his stupidity……

  • Noah Dawson

    What would have the deficit going down would be if the government would start printing the nations currency again instead of o private bank. There would be no interest and our income tax could then actually go to paying off the debt instead of solely going to the debts interest.

  • seazen

    The trouble is that there are too many people who look at everything through the prism of their own instant gratification. No nation can survive without sustained and enthusiastic investment in education and its core infrastructure. Just as Wall Street has fooled us into thinking “flash trading” is “investing” and mortgage-backed-derivatives are “innovations”, this argument is essentially saying screw the future – I want mine now.

    • Kenneth Clark

      But first we must have an educational system that actually educates to invest in. Not this institution of indoctrination that is sold as education.

    • JJBuck

      Seazen, like our president, you suffer from a deficiency in economically and financial literacy. Spending at DOE has risen to well over $100B a year while test scores EVERYWHERE are going down and, in fact, are at all time lows…aparently spending more money does not make our kids smarter, evidence how dumb most Americans have become about what is going on around them. Throwing money at the issue does not necesarily solve the problem. Have you happened to notice that the bankruptcy of Detroit and seven other large U.S. cities (with strong liberal government orientation and inevitably more to come) is largely tied to pension payments for various union empoyess, the preponderance of which are government union teacher employee pensions who, in exchange for their votes, got huge current and future benefit promises on behalf of the taxpayers? Talk about “screw the future”, that is exactly why the jobs are gone; ask the people in Detroit, and talk about instant gratification -”pay me now and screw the tax payers later down the road when I retire…as long as I get mine now”… And, not for nothing, but the advent of mortgage backed securities was christened at the hands of the GSE’s, namely Fannie and Freddie – remember Fannie Mae and Ginne Mae “certificates” or “strip-backed securities”, the onetime “safe” cornerstone of almost every mutual fund for retirees – those are, in fact, the earliest of mortgage backed securities and they also happen to be the vehicle by which the U.S. Government funded its way out of the RTC mess in the late ’80s. MBS are a very important part of financial intermediation and were very secure and solid investments until the U.S. Government decided everyone on the planet should own a house and forced those quotas on the lenders and Fannie and Freddie. The reason all the fund managers decided to buy them [globally] was because they were ALL in search of yield to fund impossible actuarially-dervied tables for the government pensions they were managing…and the vicious circle continues. How about the trilion dollar annual deficits now since five years and counting by the Obama administrtation- talk about screw the future. I tell my daughter’s college friends who voted for this lunatic that they will spend their entire adult lives suffering from and trying to solve the mess the Pied Piper has left for them. So how are enjoying socialism so far?

      • seazen

        Wow. That is quite a rewrite of recent history where the intention is to blame American workers and homeowners for a mess created by the brilliant MBAs and lawyers working for the financial elite. It also is an attempt to scream socialism when you seem to know little about that really is. Reading the details about the broader economic realities that drove Detroit into the ground (where, like other cities, existing pension funds were stripped to fund needed services while tax breaks were being given to corporations). Hard-working Americans who held contracts with both private and public organizations in terms of their pensions have been thrown to the wolves for the benefit of the “investor class.” If that is how you want things to be – just say so.

        • JJBuck

          Puleeeeze, Seazen, the “financial elite” are none other than the members of our hallowed congress, themselves. Before you can accuse me of re-writing financial history you need to understand it yourself, which according to the triteness of your flavor-of- the-day progressive comment shows quite clearly that you do not. Just take a page from Rachel Maddow’s play book and just “google it” if you even know what to look for. I know, I was there when these regulations were written, and I now have to live wiht them every day – come and spend three weeks with me and I will show you first-hand how regulation manifests itself in choking businesses.. Oh, BTW, I grew up in Detroit and lived there for 25 years. Talk about re-writing financial history…and, also BTW, my direct family members lived in a communist/socialist country for decades…you think you know about socialism but like most liberals you don’t have any kind of grasp on what that really means. You like the stagnation we have now? This is just the beginning. Just wait -soon we’ll all be “living the dream”… and how IS that “Hopey Changey” thing working out for ‘ya, anyways these days?

  • iSheeple 1

    BWA HAHAHA Obama’s Economy Speech July 24,2013: Screaming Goat Version: http://youtu.be/VuiibYy6z_k via