Under President Obama, government jobs have disappeared, particularly at the state and local levels. The unemployment rate would probably be lower than 7% if government jobs now kept pace with the number of government jobs as a share of the entire economy from the Ronald Reagan Presidency. There would be 1.3 million more government workers in teaching, responding to emergencies, and keeping our streets safe, among other things. Increasing government spending that raises the National Debt during an economic crisis, often referred to as Keynesian economics, is what historically brings about a full recovery that eventually balances the Federal Budget to pay down the National Debt. Republicans have referred to Obama as someone who harbors socialist ideas, such as huge government spending, raising taxes, and stifling businesses with regulations. Ironically, Reagan is much more Keynesian than current Republican political idol, Ronald Reagan, whom conservatives adore for his small government and lower taxes rhetoric. State and local governments, under Reagan, invested in education and infrastructure to support a growing population. Also, Reagan boosted military spending to deal with foreign security threats.
http://www.nytimes.com/2012/03/05/opinion/krugman-states-of-depression.html?_r=1
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