The Private Sector Will Solve All?

One major belief of ultra right (Tea Party) politicians is that the federal government is too big and that rules and regs need to be cut to spur private sector job growth. On paper that sounds nice, but mortgage servicers from coast to coast surely are nervous about layoffs in both the private and public sectors because almost every mortgagor without a job is potentially a customer who might default in the months ahead. On Monday technology bellwether Cisco said it was cutting 6,500 workers, while bookstore giant Borders announced it would eliminate 11,000 jobs as it enters liquidation mode. In short, the key to delinquencies improving is job growth but with state and local governments shedding workers like never before, and private sector firms like Cisco cutting, just where is that job growth going to come from? In other words, when is the last time you saw a story about a major U.S. employer hiring thousands of new workers? Will trimming rules and regs really create new jobs or is it all just a handy sound bite for the 2012 elections?