States That Cut The Most Spending Have Lost The Most Jobs

Interesting observations about failed Republican economic policies [excerpt below, click on link for the entire artcile]:


CHART: States That Cut The Most Spending Have Lost The Most Jobs

There’s a new cult of economic thought sweeping the nation — or at least many Republican (and even some Democratic) political circles. Its adherents cling to the erroneous belief that sharp government spending cuts will revitalize economic growth and create much needed new jobs

Speaker of the House John Boehner (R-OH) is an ardent follower of this Cut-Grow cult, as are a number of high profile governors. For instance, Gov. John Kasich (R-OH) declared, “We’re going to have to reduce spending…to create a platform for economic growth.” When Gov. Chris Christie (R-NJ) delivered his budget to the state Legislature he argued, “We must continue to cut government spending” to create jobs and prosperity for New Jersey families. Gov. Scott Walker (R-WI) vowed his budget “lays [the] foundation to create jobs.”

Now these Republicans want the American public to drink a giant glass of their Cut-Grow Kool-Aid. But the data actually show the opposite of their claims to be true: steep spending cuts are hampering economic recovery in some states, while other states that resisted cuts or increased spending are now seeing declining unemployment rates, faster private-sector job creation, and stronger economic growth.


Relative to national economic trends, states that increased spending enjoyed on average:

•0.2 percentage point decrease in the unemployment rate
•1.4 percent increase in private employment
•0.5 percent real economic growth since the start of the recession

In contrast, states that cut spending saw on average

•1 percentage point increase in the unemployment rate
•2.1 percent loss of private employment
•2.9 percent real economic contraction relative to the national economic trend