>Economist:cutting government jobs will hurt at first, but help in long run
Call it the castor oil economy. New Jersey will have to continue to take its strong medicine by cutting government jobs while hoping the private sector recovers, an economist for a major forecasting firm said Friday.
Jim Diffley, chief U.S. Regional Economist for IHS Global Insight, said government worker layoffs will hurt the economy in the short term, but he believes they are necessary for the long-term fiscal health of the state.
“Governments, such as New Jersey, were overextended,” Diffley said. “In the short term, those cuts are painful. In the long term, they are helpful in the sense that they create a better business environment.” (Method, Gannett)
