Threat from mounting public job losses tested Obama’s economic strategy

The Washington Post reports:

As the economic recovery has struggled to pick up speed, one of the biggest stumbling blocks has been job losses in state and local governments, which have been on the rise for much of President Obama’s term.

Early on, Obama fought for aid that saved hundreds of thousands of these jobs, economists say. Yet a year later, when his economic advisers said another large round of aid was critical for the health of the economy, Obama declined to make it a key part of his agenda. His political advisers said such an effort would be fruitless. Republican opponents on Capitol Hill, including some who were glad to see the public sector shrink, were arguing that these jobs were not vital for the economy.

The struggles of central planning.