(Justin Sullivan/Getty Images)
Aug 03, 2012
The US jobs report released Friday showed the creation of 172,000 private sector jobs in July. Despite those nominal gains, nearly 9,000 public sector jobs were lost, a trend that many observers argue reveals the negative impact austerity measures and public sector budget cuts have had on economic growth.
According to the Bureau of Labor Statistics report, Federal employment fell by 2,000 jobs, state government employment fell by 6,000, and local government employment fell by 1,000. Unemployment inched up to 8.3 per cent.
"The July jobs numbers highlight the folly of those who are demanding more cuts in government spending," said Robert Borosage, co-director of the Campaign for America's Future. "They are bleeding an economy that is barely in recovery - and then blaming those who are trying to provide relief."
"Americans have been badly served by a tea party Republican right that has departed from the traditional policies of both parties in recessions, and demanded austerity in a time of trouble. As we head towards the fiscal cliff in December, when the sequester calls for cutting some 10 percent from discretionary spending, legislators in both parties should reconsider inflicting more pain on this very weak economy."
In this vein, a new report this week, "Prosperity Economics; Building an Economy For All," authored by Jacob Hacker and Nathaniel Loewentheil, calls for "immediate action to jump-start our sagging economy" by spending on infrastructure, schools and the other public sectors of the economy that have suffered under the pressure of austerity economics.
"The experience of 2008 tells us that an economy built on the prosperity of a few is inherently unstable," said Deepak Bhargava, director of the Center for Community Change, in response to Hacker's report. He said the report was an essential guide for returning growth and growing a shared prosperity to all segments of society. He added, however, "We have to be honest. Our leaders in Washington are running headlong in the wrong direction."
Hacker and Loewentheil lamented this week that the 'mythology of austerity' had gained so much traction in Washington these days, "that even if Obama wins reelection, we may end up with cuts in education and economic security only slightly less draconian than those in GOP blueprints."
"This would be a huge loss for our society," they wrote, "and a huge lost opportunity to revive faith among middle-class Americans that government can address their strains."
Why Your Ongoing Support Is Essential
Donald Trump’s attacks on democracy, justice, and a free press are escalating — putting everything we stand for at risk. We believe a better world is possible, but we can’t get there without your support. Common Dreams stands apart. We answer only to you — our readers, activists, and changemakers — not to billionaires or corporations. Our independence allows us to cover the vital stories that others won’t, spotlighting movements for peace, equality, and human rights. Right now, our work faces unprecedented challenges. Misinformation is spreading, journalists are under attack, and financial pressures are mounting. As a reader-supported, nonprofit newsroom, your support is crucial to keep this journalism alive. Whatever you can give — $10, $25, or $100 — helps us stay strong and responsive when the world needs us most. Together, we’ll continue to build the independent, courageous journalism our movement relies on. Thank you for being part of this community. |
Our work is licensed under Creative Commons (CC BY-NC-ND 3.0). Feel free to republish and share widely.
The US jobs report released Friday showed the creation of 172,000 private sector jobs in July. Despite those nominal gains, nearly 9,000 public sector jobs were lost, a trend that many observers argue reveals the negative impact austerity measures and public sector budget cuts have had on economic growth.
According to the Bureau of Labor Statistics report, Federal employment fell by 2,000 jobs, state government employment fell by 6,000, and local government employment fell by 1,000. Unemployment inched up to 8.3 per cent.
"The July jobs numbers highlight the folly of those who are demanding more cuts in government spending," said Robert Borosage, co-director of the Campaign for America's Future. "They are bleeding an economy that is barely in recovery - and then blaming those who are trying to provide relief."
"Americans have been badly served by a tea party Republican right that has departed from the traditional policies of both parties in recessions, and demanded austerity in a time of trouble. As we head towards the fiscal cliff in December, when the sequester calls for cutting some 10 percent from discretionary spending, legislators in both parties should reconsider inflicting more pain on this very weak economy."
In this vein, a new report this week, "Prosperity Economics; Building an Economy For All," authored by Jacob Hacker and Nathaniel Loewentheil, calls for "immediate action to jump-start our sagging economy" by spending on infrastructure, schools and the other public sectors of the economy that have suffered under the pressure of austerity economics.
"The experience of 2008 tells us that an economy built on the prosperity of a few is inherently unstable," said Deepak Bhargava, director of the Center for Community Change, in response to Hacker's report. He said the report was an essential guide for returning growth and growing a shared prosperity to all segments of society. He added, however, "We have to be honest. Our leaders in Washington are running headlong in the wrong direction."
Hacker and Loewentheil lamented this week that the 'mythology of austerity' had gained so much traction in Washington these days, "that even if Obama wins reelection, we may end up with cuts in education and economic security only slightly less draconian than those in GOP blueprints."
"This would be a huge loss for our society," they wrote, "and a huge lost opportunity to revive faith among middle-class Americans that government can address their strains."
The US jobs report released Friday showed the creation of 172,000 private sector jobs in July. Despite those nominal gains, nearly 9,000 public sector jobs were lost, a trend that many observers argue reveals the negative impact austerity measures and public sector budget cuts have had on economic growth.
According to the Bureau of Labor Statistics report, Federal employment fell by 2,000 jobs, state government employment fell by 6,000, and local government employment fell by 1,000. Unemployment inched up to 8.3 per cent.
"The July jobs numbers highlight the folly of those who are demanding more cuts in government spending," said Robert Borosage, co-director of the Campaign for America's Future. "They are bleeding an economy that is barely in recovery - and then blaming those who are trying to provide relief."
"Americans have been badly served by a tea party Republican right that has departed from the traditional policies of both parties in recessions, and demanded austerity in a time of trouble. As we head towards the fiscal cliff in December, when the sequester calls for cutting some 10 percent from discretionary spending, legislators in both parties should reconsider inflicting more pain on this very weak economy."
In this vein, a new report this week, "Prosperity Economics; Building an Economy For All," authored by Jacob Hacker and Nathaniel Loewentheil, calls for "immediate action to jump-start our sagging economy" by spending on infrastructure, schools and the other public sectors of the economy that have suffered under the pressure of austerity economics.
"The experience of 2008 tells us that an economy built on the prosperity of a few is inherently unstable," said Deepak Bhargava, director of the Center for Community Change, in response to Hacker's report. He said the report was an essential guide for returning growth and growing a shared prosperity to all segments of society. He added, however, "We have to be honest. Our leaders in Washington are running headlong in the wrong direction."
Hacker and Loewentheil lamented this week that the 'mythology of austerity' had gained so much traction in Washington these days, "that even if Obama wins reelection, we may end up with cuts in education and economic security only slightly less draconian than those in GOP blueprints."
"This would be a huge loss for our society," they wrote, "and a huge lost opportunity to revive faith among middle-class Americans that government can address their strains."
We've had enough. The 1% own and operate the corporate media. They are doing everything they can to defend the status quo, squash dissent and protect the wealthy and the powerful. The Common Dreams media model is different. We cover the news that matters to the 99%. Our mission? To inform. To inspire. To ignite change for the common good. How? Nonprofit. Independent. Reader-supported. Free to read. Free to republish. Free to share. With no advertising. No paywalls. No selling of your data. Thousands of small donations fund our newsroom and allow us to continue publishing. Can you chip in? We can't do it without you. Thank you.