In This Together CT

A University of Connecticut report released today reaffirmed the connection between cuts in public sector jobs and losses in the private sector. UCONN’s Connecticut Center for Economic Analysis (CCEA) analyzed scenarios that contemplated both wage cuts and employee layoffs in the public sector and found that in either case, the impact would be to worsen job losses in the private sector. If the legislature attempted to balance the budget through State employee layoffs, CCEA found that the results would be “devastating” and result in 70,000 lost jobs, “in addition to the forecast loss of 55,000.”

The State Employee Bargaining Agent Coalition (SEBAC) believes it is false to assume that Connecticut’s crisis can be solved by cutting public sector jobs without also impacting middle class private sector jobs. Not only is the relationship between public and private jobs important, but cutting the services the workforce delivers in an economic crisis only worsens our economy as a whole. Connecticut citizens are increasingly relying on public services and supports as the economy has continued its downward spiral.

CCEA’s report also confirms that middle-class workers’ wages will end up contributing to the stimulus of our local economy. These workers won’t invest in foreign emerging markets; they will invest in goods and services provided by local businesses. That is just what the smart economists — both conservative and progressive — have ordered.

As more non-partisan groups evaluate specific budget proposals, we believe they will also question the underlying assumptions made by the Governor and her representatives. Connecticut families deserve a comprehensive and well-thought out approach to this crisis and reports such as the one released by the CCEA are an important part of the debate.

View a copy of the report online at CCEA’s website:
Just How Bad? Connecticut’s Economy Slides – The Connecticut Economic Outlook: February 2009

This entry was posted on Wednesday, February 18th, 2009 at 5:18 pm and is filed under Campaign News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.