A new survey from the Federal Reserve found that both American income and wealth have deteriorated dramatically since 2007, as the median real income has fallen by 7.7 percent — everyone taking a hit but “retirees and other nonworking families.” For the average American, net worth has declined by about 40 percent since 2007 — from $126,000 to $77,000. The average family can say goodbye to about 18 years’ worth of savings.
Meanwhile, not only does the Bureau of Labor Statistics find unemployment rates of government workers at 4.2 percent but also studies find that public-sector employees — free of the constraints of demand — make more than their private-sector counterparts in similar vocations.
What this signals to the president, naturally, is that the economy is jonesing for more unsustainable busywork and debt. Hey, good salaries and job security — what’s not to like?
Moreover, the context of President Obama’s remark is simple: He believes that public-sector jobs are a vital measure of economic growth. This is the prevalent view from the left these days. “Everybody knows that government creates jobs,” lied Sen. Sherrod Brown recently. Liberal Washington Post columnist E.J. Dionne quipped that when conservatives say “government doesn’t create jobs,” “the riposte should be quick and emphatic: ‘Yes it has, and yes, it does!'” (And really, how can anyone argue with that kind of ironclad logic?)