…job losses in the public sector.
Nice blog from the WSJ on where the unemployment rate would be absent all those layoffs in the public sector (h/t: HS).
A few additional points, if I may:
–these are real jobs by real people of the type you see everyday when you drop your kid off at school, get a speeding ticket (whoops…bad e.g., but you know what I mean), or pass a firehouse. You see their work when you go to a soccer game at a public field that’s in decent shape or stroll in a public park.
–there’s a significant mulitplier to state and local spending, both in terms of contracting out work to private entities and spending by public workers in their communities (Zandi puts it at 1.4–for a dollar of state fiscal relief, GDP grows $1.4).