This Is The Devastating Public Austerity That People Now See Is Slamming The Economy

bridge out

Photo: LuckyLynda74 via flickr

Something must have happened this weekend, because both the Wall Street Journal and the conservative think tank the American Enterprise Institute have pieces today on how a pull-back in public spending is hurting the economy. We’ve been harping on this since at least last month, when we told you about how the public sector has rarely shrunk more rapidly than under President Obama’s first term.

With a couple of exceptions, fiscal spending at both the federal and state and local level continues to tick downward.

Public sector employment remains in a downward trend

Especially for teachers

State and local spending has ticked up

Thanks in part to federal grants

But construction spending continues to decline

Whether it's roads

Or water and sewage

Or public safety

Or schools

Meanwhile, corporations have been spending

Thanks to massive corporate profits

And corporate profits by GDP continues to rise

Landlords continue to do well too

Finally, the only number that matters: private hiring continues to point north

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