Conservative Budget Cuts Hurting State Economies

Posted by | September 5, 2011 09:40 | Filed under: Top Stories

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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