Zero Hedge warns that massive job cuts in the federal government may lead to a recession in certain parts of the country.
The Trump administration's epic purge of federal workers is shaping into one of the most significant job cuts in a generation. Early indicators suggest Northern Virginia, Washington, DC, and Maryland may be in the beginning innings of an economic downturn, as jobless claims rise and a surge in active housing listings signals a very ominous outlook.
On Thursday morning, Torsten Slok, chief economist at Apollo, joined Bloomberg TV, warning, "The consensus expects total DOGE-related job cuts to be 300,000 ... However, studies show that for every federal employee, there are two contractors. As a result, layoffs could potentially be closer to 1 million," Slok noted.
There's more at the link.
I suppose Mr. Slok has a point; one side of the coin, if you will. However, the other side of the coin is much more advantageous to all of us. It's our tax dollars that created and paid for the jobs that are now being cut. Effectively, they were an unnecessary tax on the entire nation, not just certain areas. Now that they're being cut, all of us should feel the economic relief from that tax, one way or another. Quite how that will work out remains to be seen, but I'd much rather remove that economic burden from our budget and use the savings to pay down the national deficit that we've incurred through unnecessary and wasteful spending.
Yes, the Washington D.C. area may slip into local recession with all the job losses that may be incurred. However, those jobs are the reason why, until now, it was the highest-paid region in the country, with the most expensive houses and other amenities. Perhaps that will now come back into balance with the rest of us plebs!
Peter
8 comments:
NOVA will have a recession? So with MD. Can't happen to nicer people. Lots of visa holders will be in 'recession' too. Their, our, $ goes further back where they came from.
My OVER-THE-MOON leftie mom had this to say (her exact words, not mine!): "I'd like to know how these two (I'll withhold my descriptive noun) think all these terminated people, who went into a federal job feeling it was stable income, are going to pay their mortgages or rent, feed their children, make car payments, manage school tuition, etc."
...As if it's MY task to provide these people with "a stable income!" I have a "stable income" because I spent 21 years in the military, and God landed me with a job in a stable company for almost 23 years since. That being said, I live DAILY with the grounded knowledge that that "stability" can be ripped out from under me with simple words like "We're downsizing. We're going to have to let you go."
The left has got otherwise smart folks like my mom snowed into DEFENDING fraud, waste, and abuse! This fish ain't bitin' THAT worm...
Funny; no one on the Left had ANY problems with the 14000 pipeline workers who were summarily let go when Biden axed the Keystone pipeline, let alone all the other workers who were suddenly left unable to make ends meet when Biden KILLED our energy industry. And what about the THOUSANDS of maintenance workers who were kicked to the curb during the Scamdemic "lockdowns?" What about all the farmers who were told "Learn to code" by Biden? After all, there's NOTHING to farming. Just put a seed in the ground water it, and it'll grow; right?
My take; the fact that nation's biggest employer is the federal government should be pause for GREAT concern. The possibility that areas around DC might go into recession because of Trump's fat-trimming is indicative of just how much the cancer has metastasized! And this doesn't even TOUCH the ROT in STATE AND LOCAL governments!
Long story short, ZERO shits given about the government layoffs. Maybe they can learn to code...
When the oil field died, many small communities in the boonies of oil field country where left with thousands of workers with little money, and nowhere to go. Recession doesn't describe the effect, and depression a real existence for entire communities.
D.C. will manage. They have no choice, created their own problem, and since a huge amount of them are grifters, it serves them right. Maybe they can learn code, or shovel manure.
Amen-good bye and good luck. These people are parasites, they resent someone asking what the hell they do! What's the saying? Oh yeah, Learn To Code!
The national offices of many agencies in the DC area have LOTS of high paying not very busy federal jobs.
They use the excuse of being at headquarters to inflate both pay and total number of employees.
They are the place that cuts NEED to happy, but unfortunately they are close to power and are likely to be the last to be cut.
In my experience, the small field offices that work directly with people are often understaffed and under tight budgets while doing much of the real work of those agencies.
I'm not hopeful that cuts will be made where they should be - bureaucrats are very good at protect themselves.
Jonathan
Huzzah! Another "normal" that doesn't believe it's their obligation to provide them jobs.
I'm so sick and tired of scrimping and scraping to get by on my social security. And then I hear about folks older than the country getting my money.
I'm afraid your mother is a lost cause. For those types of folks; I just ask them, are they going to accept the improved economy or are they going to continue in the bidenverse?
When they are actually fired and without any more money being paid to them, then I will believe it. Till then, just words from politicians.
Judges from far & wide are denying to Trump his ability to fire employees who report to him. We'll need the Supreme Court to be a final decider.
Boo-fin'-hoo.
The beltway real estate market boomed in up-cycles and down-cycles. By any honest measurement, it is grossly over-inflated, never having been pulled down to "the mean".
The hubris of those who said "It doesn't matter what you pay as long as it is close to D.C." are about to get a reality check.
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