Tumblr Icon RSS Icon

State-Level Anti-Stimulus

By Matthew Yglesias on March 24, 2011 at 9:14 am

"State-Level Anti-Stimulus"


google plus icon

Atrios says “All the various cuts that our horrible new Republican governors are trying to implement aren’t just going to make the residents of their states suffer, they’re also going to work against the macroeconomy.”

I don’t really think that’s true. Federal spending cuts shrink the federal budget deficit and constitute a negative shock to aggregate demand. States have to balance their budgets, so the alternative to a lower level of spending would be a higher level of taxes. In AD terms, it’s basically going to be a wash either way. Its the failure of congress to enact some kind of state/local bailout appropriation that’s forcing the anti-stimulative state level stuff.

Racially Motivated Voting Is Not Just For White People

Revolutionary Justice in Benghazi

By clicking and submitting a comment I acknowledge the ThinkProgress Privacy Policy and agree to the ThinkProgress Terms of Use. I understand that my comments are also being governed by Facebook, Yahoo, AOL, or Hotmail’s Terms of Use and Privacy Policies as applicable, which can be found here.