Tuesday, November 18, 2008

The Public Payroll Always Rises - WSJ.com

One one hand government spending is in a Keynesian way seen as a means of keeping the economy growinging in an economic slowdown, but given the taxes and
The Public Payroll Always Rises - WSJ.com:
"As the recession hits home, all across America businesses and families are having to make hard decisions about what not to buy this year, or whether they can afford a vacation or that plane trip home for the holidays. The exception is the government -- federal, state and city.

"New York City did witness a reduction in public employment in 2002 and 2003, during the last period of slower economic growth. But the city quickly resumed its habit of ever-growing payrolls, and they have kept growing rapidly in the years since -- to an estimated record this June 30 of 313,965 employees on the public dime, according to the Mayor's office. That's an increase of more than 40,000 public workers in a year when Wall Street has been enduring historic losses and laying off tens of thousands of people."
Which means that New York State Taxes will probably go up again, which will further slow the economy of upstate New York. (BTW recently New York State gave up the top spot in taxes, but we are still a solid #2)

1 comment:

Anonymous said...

Look at the source of the data for the WSJ editorial. I can't be sure, but I believe they're comparing apples with apples + oranges. The 2008 numbers show about 270,000 NYC full-time employees plus another 40,000 in three categories (including "other"). The 270k NYC employees number is consistent with recent years.