President Barack Obama said Tuesday that the U.S. economy would be “much better off” if federal, state, and local governments hired more workers.

As cities like Chicago face budget crises from unfunded pensions for retiring public workers and cities as large as Detroit have declared bankruptcy, Obama suggested these governments should spend more taxpayer money to improve the national unemployment rate:

If those layoffs had not happened, if public sector employees grew like they did in the past two recessions, the unemployment rate would be 6.5 instead of 7.5. Our economy would be much better off, and the deficit would still be going down because we would be getting more tax revenue.

Continue reading →