US112 - Government Hiring Cushions Unemployment
Government should hire when it has sufficiently productive things for people to do given labor costs. When people are unemployed or underemployed, government will find more people interested in government work at lower wages. They should naturally hire and this hiring should cushion recessions, allowing for alternating surges of private and public work.
We haven't had any increase in federal hiring under Obama, and we should. The number of employees in his administration is well less than 3 million, less than it ever was from 1967-1996, despite the increase in size in our population and economy. The federal government should take this opportunity -- millions of workers at the ready and lowest ever borrowing costs -- to make big enhancements to regulatory capabilities, infrastructure, and research & development.
Simply having more jobs available gives the American worker the option of leaving a current position for a better one. The more possible employers a worker has to choose from, the more employers have to compete for workers.
This would be a massive improvement for both people and businesses, meaning that businesses would be able to cut back in hard times without destroying the economy, and be able to operate smoothly during the boom times without government interference. This would not mean massive tax increases, as money would be saved up during economic prosperity, meaning tax cuts in economic downturns when we need them most.
Without massive tax hikes, there simply won't be enough money to afford it. And that money would all come from the taxpayer, the private citizen who has a job. Essentially, the private sector has to pay for themselves and for the public worker who couldn't get one. There is no cycle: Everyone would work in the public sector
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