Saturday, May 29, 2010

David Einhorn on Keynesian Economics

In "Easy Money, Hard Truths" (5/26/10), David Einhorn--in the NY Times--delivers some interesting facts:

Government employees are expensive and difficult to fire. Bloomberg News reported that from the last peak businesses have let go 8.5 million people, or 7.4 percent of the work force, while local governments have cut only 141,000 workers, or less than 1 percent.

Public sector jobs used to offer greater job security but lower pay. Not anymore. In 2008, according to the Cato Institute, the average federal civilian salary with benefits was $119,982, compared with $59,909 for the average private sector worker; the disparity has grown enormously over the last decade.

Modern Keynesianism works great until it doesn’t. No one really knows where the line is.

So much wisdom in one article. I recommend you read the entire article by clicking on the link above.

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