Tuesday, June 12, 2012

Does Obama Know Why Cities Can't Hire More?

Josh Barro, Bloomberg
On Friday President Barack Obama spoke about why the economic recovery has been so slow. People are focusing on his gaffe -- saying “the private sector is doing fine” -- and Ezra Klein admonishes us to focus on the president's substantive point, which is that job losses in the public sector have undermined the recovery overall.Unfortunately, Obama didn’t mention a major barrier to job growth in the public sector -- and neither did Ezra: unsustainable compensation structures. This problem existed before the recession, but it’s gotten worse during...

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