State and local governments in the U.S. may be forced to cut 900,000 jobs next year without additional help from the federal government, according to a report released by a prominent liberal think tank Wednesday.
What is 900,000 as a percentage of total state and local government employement? Total government employment (including Federal) is 22 million. As of 2006, state and local employment apart from schools and hospitals was 8 million. I think it's safe to say that total state and local employment is at least 9 million, so that 900,000 represents less than 10 percent.
My proposal is this: cut state and local salaries by 10 percent. That will save as much money as cutting 900,000 jobs. It won't require any Federal aid. And, given the weak labor market, it won't result in governments losing many workers.