Broken Trust Takes Time to Mend, by Tyler Cowen, Commentary, NY Times: president Obama caused a stir recently when he said that “the private sector is doing fine” and pinned many of the nation’s economic troubles on a decline in public-sector employment. He cited some interesting numbers, but he didn’t draw the right lesson — namely, that America is witnessing a collapse of trust in politics, including the shaping of its broad economic policy.
Since Mr. Obama took office, 780,000 private sector jobs have been created, while the number of public sector jobs has fallen by about 600,000, mostly at the state and local level. A quick look might suggest that we need only to bolster the number of public sector jobs to have a healthier economy, but there is a deeper way to think about the problem.
State and local governments are controlled by politicians and, indirectly, by voters. And for better or worse, those voters have lost faith in the social returns of these jobs and our ability to afford them. The voters have responded by looking to cut expenses, and they’ve chosen state and local government employment as a target. ...
No time to comment -- will leave that to you.