From the start of the Great Recession in December 2007 through the end of 2010, 24 states have cut government spending by an average of 7.5 percent after adjusting for inflation. Another 25 states have expanded government outlays by an average of 11 percent. (The analysis excludes Alabama due to data problems reported by the National Association of State Budget Offices). And the differences in these states’ economic performance could not be more self-evident. Relative to national economic trends, states that increased spending enjoyed on average:(S2PZGZKTTXA8)
In contrast, states that cut spending saw on average
Wednesday, June 29, 2011
Cutting Spending Bad For Economic Growth?
I'll leave the statistical anaylsis of this to those like my friend Cory but it appears that despite what the GOP would have us believe, cutting spending is actually bad for growth.