Tuesday, February 15, 2011

Ed O'Keefe gets it wrong

In his count of federal employees he forgets military. John Boehner make be a crook, but he is a crook on behalf of his district which, unlike Eric Cantor's distict, does not get a whole lot of gain from federal employment.

The answer as to why we have fewer civilian federal employees over time is simple; We use most government funds for income transfers, and  government is a limited channel. We have to lay people off on the federal side because pgl has a love for entitlements and transfer payments. We have a more unemployment because governement transfers reduce wage variability, so we have fewer wage bands, Channel Theory yet again.

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