skip to main content
skip to newscasts

Friday, March 29, 2024

Public News Service Logo
facebook instagram linkedin reddit youtube twitter
view newscast page
play newscast audioPlay

The latest on the Key Bridge collapse, New York puts forth legislation to get clean energy projects on the grid and Wisconsin and other states join a federal summer food program to help feed kids across the country.

view newscast page
play newscast audioPlay

Republicans float conspiracy theories on the collapse of Baltimore's Key Bridge, South Carolina's congressional elections will use a map ruled unconstitutional, and the Senate schedules an impeachment trial for Homeland Secretary Mayorkas.

view newscast page
play newscast audioPlay

Historic wildfires could create housing and health issues for rural Texans, a Kentucky program helps prison parolees start a new life, and descendants of Nicodemus, Kansas celebrate the Black settlers who journeyed across the 1870s plains seeking self-governance.

Texas Jobless Rate Ticks Up; Are Government Spending Cuts to Blame?

play audio
Play

Monday, September 19, 2011   

AUSTIN, Texas - Texas lost 1300 jobs overall in August. Some 8100 new private-sector jobs could not make up for the loss of 9400 government jobs, and the unemployment rate ticked up to 8.5 percent. The pattern is predictable, according to economists who don't believe the government should emphasize spending cuts during tough times.

Job losses are inevitable when the federal government downsizes, according to economist and University of Texas government professor James Galbraith. He says that, if current austerity arguments win out, the ripple effects will be felt across the state.

"As the federal government cuts back, the economy will slow, people will lose their jobs, both civil servants - school teachers and so forth at the state level - and people in the private sector whose livelihoods depend, in part, upon the spending by public servants."

A total of $24 billion in federal stimulus funds helped ease unemployment in Texas over the last two years. A quarter of that money was used to help balance the state budget. As those funds dried up, lawmakers resorted to cutting programs, along with thousands of state government positions.

Local governments wind up bearing much of the brunt of spending cuts, and they try to save money primarily on public education, according to chief economist Chad Stone of the Center on Budget and Policy Priorities in Washington, who disagrees with those in Congress who say cutting the deficit now would spark job growth.

"The argument for immediate sharp cuts in government spending as a means to boost the economy doesn't really square. It translates into less demand in the economy, less spending and fewer jobs."

The president of the Economic Policy Institute in the national capital, Larry Mishel, says that with profits nearly one-third higher than they were before the recession, the private sector has plenty of cash on hand to start hiring again. He says the problem is that companies don't want to invest unless they're confident there will be enough consumers able to spend.

"Consumers are not going to be fueling a lot of consumption growth because they are beleaguered by heavy debt, and the loss of wealth from the financial crisis, and high unemployment. And that's why the government has to step in."

Nationally, 17,000 jobs were created last month by private businesses, but those gains were offset by 17,000 public-employee layoffs. Twenty-six states saw their overall unemployment rates go up in August, 12 states saw declines, while 12 states remained steady.


get more stories like this via email

more stories
The U.S. Supreme Court heard arguments this week about the popular abortion pill Mifepristone and will weigh in on whether the U.S. Food and Drug Administration was correct in how it can be dosed and prescribed. (Ascannio/Adobe Stock)

Health and Wellness

play sound

Missouri residents are worried about future access to birth control. The latest survey from The Right Time, an initiative based in Missouri…


Social Issues

play sound

Wisconsin children from low-income families are now on track to get nutritious foods over the summer. Federal officials have approved the Badger …

Social Issues

play sound

Almost 2,900 people are unsheltered on any given night in the Beehive State. Gov. Spencer Cox is celebrating signing nine bills he says are geared …


The U.S. teaching workforce remains primarily white while the percentage of Black teachers has declined. However, the percentage of Asian and Latinx teachers is rising.(WavebreakMediaMicro/Adobestock)

Social Issues

play sound

Education advocates are calling on lawmakers to increase funding for programs to combat the teacher shortage. Around 37% of schools nationwide …

Environment

play sound

New York's Legislature is considering a bill to get clean-energy projects connected to the grid faster. It's called the RAPID Act, for "Renewable …

Social Issues

play sound

Michigan recently implemented a significant juvenile justice reform package following recommendations from a task force made up of prosecutors…

Health and Wellness

play sound

Medicare and Medicaid are key sources of health coverage for many Americans and some people qualify for assistance under both programs. With lagging …

 

Phone: 303.448.9105 Toll Free: 888.891.9416 Fax: 208.247.1830 Your trusted member- and audience-supported news source since 1996 Copyright © 2021