{"id":2129,"date":"2012-06-21T15:29:40","date_gmt":"2012-06-21T19:29:40","guid":{"rendered":"http:\/\/therationalprogressive.com\/cms\/?p=2129"},"modified":"2012-06-21T15:29:40","modified_gmt":"2012-06-21T19:29:40","slug":"austerity-is-hammering-state-economies","status":"publish","type":"post","link":"http:\/\/therationalprogressive.com\/cms\/2012\/06\/austerity-is-hammering-state-economies\/","title":{"rendered":"Austerity Is Hammering State Economies"},"content":{"rendered":"<p style=\"margin: 0px 0px 1em; padding: 0px; border: 0px; outline: 0px; font-size: 15px; font-family: georgia, serif; vertical-align: baseline; line-height: 22px; color: #333333; background-color: #ffffff;\">Public spending cuts, while on the rise worldwide, are bad for the U.S. economy. U.S. states provide a good illustration of this principle. Since the start of the Great Recession 20 states have cut public spending while 30 states expanded spending. Those that cut spending have fared worse economically than those that expanded spending.<\/p>\n<p style=\"margin: 0px 0px 1em; padding: 0px; border: 0px; outline: 0px; font-size: 15px; font-family: georgia, serif; vertical-align: baseline; line-height: 22px; color: #333333; background-color: #ffffff;\">The median \u201cspending cut\u201d state saw the following results:<\/p>\n<ul style=\"margin: 0px 0px 1em 2em; padding: 0px; border: 0px; outline: 0px; font-size: 15px; font-family: georgia, serif; vertical-align: baseline; list-style: none; color: #333333; line-height: 22px; background-color: #ffffff;\">\n<li style=\"margin: 0.33em 0px 0.66em; padding: 0px; border: 0px; outline: 0px; font-style: inherit; vertical-align: baseline; line-height: 1.5em; list-style: square;\">The unemployment rate is 4.1 percentage points higher<\/li>\n<li style=\"margin: 0.33em 0px 0.66em; padding: 0px; border: 0px; outline: 0px; font-style: inherit; vertical-align: baseline; line-height: 1.5em; list-style: square;\">There are 6 percent fewer private-sector jobs<\/li>\n<li style=\"margin: 0.33em 0px 0.66em; padding: 0px; border: 0px; outline: 0px; font-style: inherit; vertical-align: baseline; line-height: 1.5em; list-style: square;\">The state economy is growing 2.7 percentage points slower than before the recession<\/li>\n<\/ul>\n<p style=\"margin: 0px 0px 1em; padding: 0px; border: 0px; outline: 0px; font-size: 15px; font-family: georgia, serif; vertical-align: baseline; line-height: 22px; color: #333333; background-color: #ffffff;\">On average, states that resisted cuts and expanded public expenditures saw the following results:<\/p>\n<ul style=\"margin: 0px 0px 1em 2em; padding: 0px; border: 0px; outline: 0px; font-size: 15px; font-family: georgia, serif; vertical-align: baseline; list-style: none; color: #333333; line-height: 22px; background-color: #ffffff;\">\n<li style=\"margin: 0.33em 0px 0.66em; padding: 0px; border: 0px; outline: 0px; font-style: inherit; vertical-align: baseline; line-height: 1.5em; list-style: square;\">Unemployment is 3.5 percentage points higher than before the recession<\/li>\n<li style=\"margin: 0.33em 0px 0.66em; padding: 0px; border: 0px; outline: 0px; font-style: inherit; vertical-align: baseline; line-height: 1.5em; list-style: square;\">Lost private-sector jobs are only two-thirds the rate of the average spending cut state.<\/li>\n<li style=\"margin: 0.33em 0px 0.66em; padding: 0px; border: 0px; outline: 0px; font-style: inherit; vertical-align: baseline; line-height: 1.5em; list-style: square;\">The economy is growing 2.6 percentage points faster than before the recession.<\/li>\n<\/ul>\n<p style=\"margin: 0px 0px 1em; padding: 0px; border: 0px; outline: 0px; font-size: 15px; font-family: georgia, serif; vertical-align: baseline; line-height: 22px; color: #333333; background-color: #ffffff;\">This column digs deeper into these numbers to see why slashing public spending makes a fragile economy worse. We argue that a strong and sustained economic recovery hinges on government investment.<\/p>\n<p><strong>SOURCE:<\/strong> \u00a0<a href=\"http:\/\/www.americanprogress.org\/issues\/2012\/06\/austerity.html\">Austerity Is Hammering State Economies<\/a>.<\/p>\n<p>&nbsp;<\/p>\n<hr\/>\n","protected":false},"excerpt":{"rendered":"<p>Public spending cuts, while on the rise worldwide, are bad for the U.S. economy. U.S. states provide a good illustration of this principle. Since the start of the Great Recession 20 states have cut public spending while 30 states expanded spending. Those that cut spending have fared worse economically than those that expanded spending. The&#8230;<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[16,22,7],"tags":[893,846,1246,536,37],"_links":{"self":[{"href":"http:\/\/therationalprogressive.com\/cms\/wp-json\/wp\/v2\/posts\/2129"}],"collection":[{"href":"http:\/\/therationalprogressive.com\/cms\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/therationalprogressive.com\/cms\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/therationalprogressive.com\/cms\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"http:\/\/therationalprogressive.com\/cms\/wp-json\/wp\/v2\/comments?post=2129"}],"version-history":[{"count":1,"href":"http:\/\/therationalprogressive.com\/cms\/wp-json\/wp\/v2\/posts\/2129\/revisions"}],"predecessor-version":[{"id":2130,"href":"http:\/\/therationalprogressive.com\/cms\/wp-json\/wp\/v2\/posts\/2129\/revisions\/2130"}],"wp:attachment":[{"href":"http:\/\/therationalprogressive.com\/cms\/wp-json\/wp\/v2\/media?parent=2129"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/therationalprogressive.com\/cms\/wp-json\/wp\/v2\/categories?post=2129"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/therationalprogressive.com\/cms\/wp-json\/wp\/v2\/tags?post=2129"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}