Here is why job growth slowed down in Pennsylvania once Tom Corbett and the Republicans’ policies began to enter the economic bloodstream. They’ve been cutting spending, and cutting spending hurts GDP and job growth.
From Bill McBride:
However the 2nd estimate of GDP showed state and local government spending was still a drag on GDP in Q2 (the advance estimate indicated a small positive contribution).
This graph shows the contribution to percent change in GDP for residential investment and state and local governments since 2005.
The blue bars are for residential investment (RI), and RI was a significant drag on GDP for several years. Now RI has added to GDP growth for the last 11 quarters (through Q2 2013).
However state and local government spending has made a negative contribution for 13 of the last 14 quarters.