Conservative Budget Cuts Hurting State Economies
Submitted by Debby
The Center for American Progress study shows that states that increased spending enjoyed, on average:
- 0.2 percentage point decrease in the unemployment rate
- 1.4 percent increase in private employment
- 0.5 percent real economic growth since the start of the recessio
States that cut spending saw on average:
- 1 percentage point increase in the unemployment rate
- 2.1 percent loss of private employment
- 2.9 percent real economic contraction relative to the national economic trend.
As the chart below shows, the bigger the state spending cuts, the higher the unemployment rate:
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