Daniel Gross of Newsweek worries that state legislatures ? which cannot follow their federal counterparts? lead in running up Keynesian-style budget deficits ? will hurt the economy:
[S]tate and local governments slashed 22,000 jobs in May. ?The actions that states are taking because of the recession and their balanced-budget requirements are slowing the economy,? said Nicholas Johnson, director of the state fiscal project at CBPP.
It?s difficult to contract your way to growth. The world?s large economies need to run higher deficits in the short term to promote growth and close the gaps later.
Mr. Gross, meet Dr. Roy Cordato. He can help cure you of your Keynesian notions:
