skip to main content

Thursday, June 1, 2023

play newscast audioPlay

Alabamans urge a grocery tax reduction, a tape shows Trump knew about a classified document on Iran, Pennsylvania puts federal road funds to work and Minnesota's marijuana law will wipe away minor offenses.

play newscast audioPlay

Democrats say a wealth tax would help alleviate some national debt, lawmakers aim to continue pandemic-era funding for America's child care sector, and teachers say firearms at school will make students less safe.

play newscast audioPlay

Oregon may expand food stamp eligibility to some undocumented households, rural areas have a new method of accessing money for roads and bridges, and Tennessee's new online tool helps keep track of cemetery locations.

Economists: State Government Austerity Causing Double Dip Risk

play audio
Play

Monday, September 12, 2011   

TALLAHASSEE, Fla. - Last month's national job figures show 17,000 jobs were created by private businesses, but they were offset by 17,000 public employee lay-offs. Chad Stone, chief economist with the Center on Budget and Policy Priorities, says the trend of state and local governments cutting back mostly hits public education. He says a big part of why the economy is back at risk is teacher layoffs as federal stimulus money runs out.

"We've seen increasing losses in jobs at the state and local government level, even as overall job creation has turned positive and the private sector is creating jobs."

Florida has an unemployment rate of 1.7 percent above the national average, according to the Bureau of Labor Statistics.

Republicans in Congress have said cutting the deficit would spark job growth, but Stone says the opposite has happened. He calls it textbook economics: Government cuts make a recession worse.

"The argument for immediate sharp cuts in government spending, as a means to boost the economy, doesn't really square. It translates into less demand in the economy, less spending and fewer jobs."

According to the Economic Policy Institute (EPI), companies have profits nearly one-third higher than they were before the recession started. Lawrence Mishel, EPI president, says the problem is not that companies don't have enough money to start hiring.

"Companies have plenty of profits they could reinvest; they have plenty of cash on hand. But they are not going to invest unless they have customers - consumers being able to spend."

He says the government has to stimulate demand because consumers cannot.

"Consumers are not going to be fueling a lot of consumption growth because they are beleaguered by heavy debt, by the loss of wealth from the financial crisis and by high unemployment. That's why the government has to step in."



get more stories like this via email

A new park, San Vicente Redwoods, opened up late last year near Santa Cruz, Calif., in an area previously ravaged by fire and logging. (Nadia Hamey)

Environment

play sound

This Saturday, June 3, thousands of Californians will be among hundreds of thousands of Americans heading into the great outdoors to celebrate …


Social Issues

play sound

Two months from today, Minnesota will begin the process of removing low-level marijuana convictions for those who have them on their criminal records…

Social Issues

play sound

Navigating college can seem overwhelming for first generation students, but an early outreach program at Arizona State University aims to change it…


Nebraska was one of 10 states to further restrict abortion access in the 2023 legislative session. At least 48 bills were passed involving restrictions for LGBTQ+ individuals. (Yurii Kibalnik/Adobe Stock)

Health and Wellness

play sound

A new Nebraska law is now the subject of a lawsuit filed in the District Court of Lancaster County. In its amended form, Legislative Bill 574 …

Social Issues

play sound

A proposal from the federal government could provide a better path toward student loan debt repayment, but a new survey finds many borrowers don't …

The Biden administration has set a goal of deploying 30 gigawatts of offshore wind electricity generation by 2030, enough to power more than 10 million American homes. (Adobe Stock)

Environment

play sound

Maine lawmakers are considering two pieces of legislation which supporters said are needed to ensure "responsible" development of offshore wind projec…

Social Issues

play sound

As the COVID-19 pandemic has subsided, senior centers in Virginia are welcoming back their participants, and one in particular has shifted some of …

Social Issues

play sound

People cannot be denied a place to live based on their race or disability in Michigan, but some are being turned down based on where they get the …

 

Phone: 303.448.9105 Toll Free: 888.891.9416 Fax: 208.247.1830 Your trusted member- and audience-supported news source since 1996 Copyright 2021