Economic Uncertainty

I always fail to understand how, in this era of 10% unemployment, laying off government workers is going to help steady our fiscal boat. Whenever someone gets laid off, they have no income; they collect unemployment (from the government). They spend less money. They don't go out to dinner. They pull their kids out of private school. They don't go to Disneyland (or anywhere else for that matter). And they probably fall behind on their bills.