Presentation on theme: "Americanprogress.org Adverse Impacts of State Fiscal Austerity Adam S. Hersh Economist, Center for American Progress July 20, 2011"— Presentation transcript:
americanprogress.org Adverse Impacts of State Fiscal Austerity Adam S. Hersh Economist, Center for American Progress July 20, /06/budget_cuts.html
The Economic Problem: Aggregate Demand Shortfall
Fiscal Policy and Economic Outcomes in the States 24 states have cut government spending by an average of 7.5 percent 1 ppt increase in the unemployment rate 2.1% loss of private employment 2.9% real economic contraction relative to the national economic trend. 25 states have expanded government outlays by an average of 11%. 0.2 ppt decrease in the unemployment rate 1.4% increase in private employment 0.5% real economic growth since the start of the recession.