A phrase that has been tossed around in local government recently is “government doesn’t create jobs,” putting the onus on the private sector.

Local governments have been cutting “to the bone,” and are heading toward more substantial layoffs, it seems.

The Federal Reserve getting closer and closer to QE3 and there is potential foranother recession.

With banks having tightened access to capital, small businesses everywhere are struggling to hire and create these jobs.

What, then, should local government – the government of the people – do to address high unemployment?