rssState Budget Woes Canceling Out Federal Stimulus
Tuesday, June 15, 2010 at 12:56 pm
- 28 Comments
Via Ezra Klein, Bruce Bartlett argues that state budget shortfalls and ensuing cuts to staff and services clearly cancel out the federal stimulus and that “economists will view this as a preventable error equivalent to the Fed’s passive shrinkage of the money supply in the early 1930s.”
He elaborates with a number of data points in his Fiscal Times column:
A June 3 report from the National Governors Association and the National Association of State Budget Officers shows that the states have cut aggregate spending by $74.4 billion, or 10.8 percent, since 2008. The expiration of $55 billion in temporary federal aid to the states could lead to further substantial spending cuts beginning on July 1.
Budget expert Stan Collender warned on June 8 that a sharp cutback in state spending mandated by state balanced budget requirements could have a negative effect on the economy as a whole. [...]
A May 26 report from Pew reviewed the responses of 13 cities to the recession. Virtually all were enacting broad based tax increases as well as new fees, job cuts and reductions in pay and benefits for municipal workers. [...]
A March 5 OECD study examined the cyclical behavior of subnational governments throughout the OECD. It found that such governments in the U.S. behaved in a far more cyclical manner — exacerbating the business cycle rather than moderating it — than in any other major country. A February study by economists Joshua Aizenman and Gurnain Kaur Pasricha found that fiscal contraction in the states offset almost 100 percent of the fiscal stimulus at the federal level in 2009.
These data are as strong an argument as any for the passage of the jobs bill and other more aggressive measures to help boost demand and lower unemployment.
Follow Annie Lowrey on Twitter
28 Comments
Pingback posted June 15, 2010 @ 1:06 pm
[...] This post was mentioned on Twitter by billiegirltoo, Jamil Smith. Jamil Smith said: RT @TWI_news: State Budget Woes Canceling Out Federal Stimulus – http://bit.ly/aULbLg [...]
Pingback posted June 15, 2010 @ 2:58 pm
[...] State Budget Woes Canceling Out Federal Stimulus « The Washington … [...]
Pingback posted June 15, 2010 @ 3:29 pm
[...] State Budget Woes Canceling Out Federal Stimulus « The Washington … [...]
Pingback posted June 15, 2010 @ 4:38 pm
[...] State Budget Woes Canceling Out Federal Stimulus « The Washington … [...]
Pingback posted June 15, 2010 @ 5:47 pm
[...] State Budget Woes Canceling Out Federal Stimulus « The Washington … [...]
Pingback posted June 15, 2010 @ 6:14 pm
[...] State Budget Woes Canceling Out Federal Stimulus « The Washington … [...]
Pingback posted June 15, 2010 @ 6:24 pm
[...] State Budget Woes Canceling Out agent Stimulus « The pedagogue … [...]
Pingback posted June 15, 2010 @ 9:50 pm
[...] State Budget Woes Canceling Out Federal Stimulus « The Washington … [...]
Pingback posted June 16, 2010 @ 1:52 am
[...] State Budget Woes Canceling Out Federal Stimulus « The Washington … [...]
Pingback posted June 16, 2010 @ 1:56 am
[...] State Budget Woes Canceling Out Federal Stimulus « The Washington … [...]
Pingback posted June 16, 2010 @ 4:00 am
[...] State Budget Woes Canceling Out Federal Stimulus « The Washington … [...]
Pingback posted June 16, 2010 @ 9:54 am
[...] State Budget Woes Canceling Out Federal Stimulus « The Washington … [...]
Pingback posted June 17, 2010 @ 12:40 pm
[...] State Budget Woes Canceling Out Federal Stimulus « The Washington … [...]
Pingback posted June 18, 2010 @ 2:06 am
[...] State Budget Woes Canceling Out Federal Stimulus « The Washington … [...]
Pingback posted June 18, 2010 @ 12:34 pm
[...] State Budget Woes Canceling Out Federal Stimulus « The Washington Independent [...]
Pingback posted June 18, 2010 @ 12:37 pm
[...] State Budget Woes Canceling Out Federal Stimulus « The Washington Independent [...]
Pingback posted June 25, 2010 @ 5:30 am
[...] State Budget Woes Canceling Out Federal Stimulus « The Washington … [...]
Pingback posted August 2, 2010 @ 1:56 pm
[...] gaps. Most make these up with rainy-day funds or bond issuance. But the severity of the recession has pushed some states close to insolvency. They are making up the gap by doing everything from turning off [...]
Pingback posted November 12, 2010 @ 4:34 pm
[...] states have been a substantial drag on the economy. In fact, cutbacks at the state and local level basically offset the effect of the American Recovery and Reinvestment Act, so that little net money was pumped into the [...]
Trackback posted August 26, 2011 @ 1:33 am
carrier luggage basket…
[...]while the sites we link to below are completely unrelated to ours, we think they are worth a read, so have a look[...]…
Trackback posted August 26, 2011 @ 10:26 pm
hat cookie cutter…
[...]just below, are some totally unrelated sites to ours, however, they are definitely worth checking out[...]…
Trackback posted August 31, 2011 @ 4:40 pm
Amy Winehouse…
[...]these are a couple of references to web pages I always link to for the fact we think they will be worthy of browsing[...]…
Trackback posted September 2, 2011 @ 2:16 am
Taylor Lautner Workout…
[...Also you might wanna' check out this blog I found here...]…
Trackback posted September 3, 2011 @ 8:54 pm
free strategy games…
[...]the time to read or visit the content or sites we have linked to below the[...]…
Trackback posted September 4, 2011 @ 9:50 am
Ecommerce devlopment for business…
[...]below, are some totally unrelated sites to ours, however, they are definitely worth checking out at least once[...]…
Trackback posted September 5, 2011 @ 10:16 am
Fast Cash Advance…
[...]if this issue is normally important to you, you could possibly enjoy this internet site[...]…
Trackback posted September 6, 2011 @ 9:54 am
Miss America 2011…
[...]below are a handful of url links to places I always link to for the fact we think they really are worth visiting[...]…
RSS feed for comments on this post.
Sorry, the comment form is closed at this time.
