MacDonald Laurier Institute | National Union of Public and General Employees

MacDonald Laurier Institute

May 20, 2020

The reason cutting public sector wages hurts the economy so badly is that, like almost all low- and middle-income earners, public sector workers spend what they earn in their communities. The bulk of what public sector workers earn goes to businesses providing items like  groceries or housing. When you take that money out of the community, everyone feels the pain.