States deficits a drag on recovery
The state budget crisis is slowing down the economic recovery according to Louis Uchitelle in a story in today's New York Times:Red Ink in States Beginning to Hurt Economic Recovery
- "The numbers are hard to add up, but even the most optimistic accounting has state spending slowing sharply while tax rates rise along with a variety of fees...
..."It is reasonable to think that the response by the states to the fiscal crisis is taking at least half a percentage point out of the growth rate of the national economy," said Nicholas Johnson, director of the State Fiscal Project at the Center on Budget and Policy Priorities in Washington. The annual growth rate has averaged 2.6 percent for the last 15 months."
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