J Pat Carter, AP
In the long run, government cuts won’t kill too many jobs. However, when looking at month-to-month changes, the connection is strong in a negative way, according to an article by Bloomberg.
If annual government spending was decreased by $50 billion, there would 400,000 fewer jobs, according to the article. That sounds like a serious number of lost jobs. But Edward Glaeser, a Harvard economics professor and author of the Bloomberg article, said it can be made up by private-sector job creation.
Annually, 1.9 million jobs are created a year, he says. If this remains the same, it could make up for potential government job losses in less than three months.
“It is time to start thinking beyond the present, and embrace the spending cuts that will mean a smaller debt burden for our children,” Glaeser said in his article.
When the government spends more, it hurts the economy, according to a recent article by the National Bureau of Economic Research. Reversely, cuts in public spending create faster growth and can create more private investment.
- The top 10 highest-paid female CEOs
- 1 number you should check each year to avoid...
- The best states in America for balancing work...
- Here's a look at the 20 worst jobs of 2015...
- Is rent out of reach? Study shows how 11 US...
- Dave Ramsey says: Build your budget together
- The 10 best cities in America for job seekers...
- Hero2Hire helps veterans, spouses find...
- 'Such a stress reliever': In Rhode... 13
- Exxon shareholders to vote on climate... 6
- Is rent out of reach? Study shows how... 1
- The top 10 highest-paid female CEOs 1
- Balancing act: Does parenting bring... 1
- Dave Ramsey says: Build your budget... 1
- Americans are very unsure about their... 1
- 1 number you should check each year to... 1