American Austerity: Why the States Cutting Spending Are Doing Worse

[MindMover]

Last edited Fri Jun 22, 2012, 12:42 PM - Edit history (2)

It's not working on that side of the Atlantic. And it's not working over here, either.

Austérité isn't just for the Europeans. In November 2010, Republicans running on an anti-stimulus platform crushed Democrats in Washington and across the country and promised to start slashing spending to unlock growth.

How's that going? Adam Hersh compares the 20 states have cut public spending with the 30 states that have expanded spending. Here's his upshot graph (note that the metric is group median):

http://www.theatlantic.com/business/archive/2012/06/american-austerity-why-the-states-cutting-spending-are-doing-worse/258825/


Austerity Is Hammering State Economies
States that Cut Spending in Response to the Recession Fare Worse Economically

http://www.americanprogress.org/issues/2012/06/austerity.html

In Europe, Consumption Gap Widens

http://online.wsj.com/article/SB10001424052702304898704577478222819697832.html?mod=e2tw