WoD – Haves and Have Nots, part II

Remember this chart and WoD from a few months ago, https://yiddishwod.wordpress.com/2010/09/08/wod-have-and-have-nots/?  (Ok, it has now been 18 months…)

At first I was kind of appalled by it.  I am a big believer that free markets and the private sector are the most efficient allocators of resources (i.e. not the public sector).  So it pained me to see this chart above.  However, there is something else going on worth additional thought (retrospectively now, I guess).

Basically, by having the public sector employed, and more importantly remaining employed, this is in effect a form of stimulus.  And perhaps a better one than waging a war or building roads to nowhere – at least it is driven by actual consumers consuming.  Because they had and have a steady-ish job, they have continued to take their families to Cheesecake Factory and buy G.I. Joe with the Kung Fu grips.  In short, they have continued to consume.  Imagine what our economy would have looked like if their line had looked line the private sector’s line, too.  Scary.

So am I for it in the long run?  No.  But am I maybe glad the graph looked that way over the past three years?  Maybe…?



Hole in the head

The marathoners need an 85 degree day like they need a lokh in kop!


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