States That Increased Spending Have Had More Economic Growth Than Those That Slashed Spending

[Omaha Steve]

http://www.laborradio.org/Channels/Story.aspx?ID=1449805

6/28/2011

By Doug Cunningham

Harsh state budget cuts have been pushed by Republicans with the claim that cutting will grow the economy and jobs. Economist Adam Hersh at the Center for American Progress Action Fund says data shows that’s not true. In fact, states that maintained or increased their spending have seen more economic growth, lower unemployment and more jobs creation. Hersh looked at 24 states that cut spending and 25 that expanded government spending by an average of 11 percent. Hersh says states that increased spend on average showed a 1.4 percent rise in private employment, lower joblessness and a half percentage point of real economic growth. States that cut spending, on average, saw a one percent hike in unemployment, a 2.1 percent drop in private employment and a 2.9 percent real economic contraction rather than growth.

[cyberswede]

1. K & R

Just what we suspected all along!

[Doctor_J]

2. I expect to hear ConNN, CRNC, Fox, and Hate Radio blaring this for a week!

:rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl:
:rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl:

I kill myself

Thanks, OS. Glad to see the DU union-haters haven't run you off completely.

[elleng]

3. No kidding!!!

:thumbsup:

Keynesian Economics
An economic theory stating that active government intervention in the marketplace and monetary policy is the best method of ensuring economic growth and stability.

government's job to smooth out the bumps in business cycles. Intervention would come in the form of government spending and tax breaks in order to stimulate the economy, and government spending cuts and tax hikes in good times, in order to curb inflation.

Read more: http://www.investopedia.com/terms/k/keynesianeconomics.asp#ixzz1QfsqQjdx

The 'old man' knew what he was talking about, that's all there is to it.

[Pacifist Patriot]

4. Just shocking

No, not really. :-)

[RC]

5. If one stops and thinks about it, this has to be true.

Government employes are just people with jobs. The only difference is one is paid for work in the private sector and the other is paid for work in the various governments, from local to federal.

So, if you cut government budgets, jobs usually get cut. It makes no difference that when jobs get cut, people get unemployed. The end result is the same as losing your job to outsourcing or whatever, you are still unemployed, on unemployment, welfare, from living wage to flipping burgers, etc.

That is why one of the Federal Government's jobs is to spend money in recessions (not military), to make jobs and get money into circulation.

What's not to see here?

[FiveGoodMen]

6. Which is why pukes are against it

Economic growth can empower the slaves.

They might even be able to switch jobs, petition their reps, or in general defend themselves.