State and Local Government Layoffs Are Hurting the Recovery

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We can’t make this point often enough. State and local layoffs are hurting the recovery. The Democrats’ 2009 stimulus provided aid to state and local governments that helped stave off cuts during 2009 and 2010, but then Congress failed to keep extending that aid and things got terrible. The correct response would’ve been to keep extending the aid until revenue collections recovered. Unfortunately a coalition of Republicans cheering on a bad economy, and Democrats too stupid or timid to act in their own political best interests stopped this from happening.

Via Bill McBride:

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