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American Austerity: Why the States Cutting Spending Are Doing Worse { Yeah right ]
www.theatlantic.com ^ | June 22 2012 | theatlantic.com

Posted on 06/22/2012 8:21:34 PM PDT by NoLibZone

What this report does tell us, however, is that there isn't any evidence that austerity does any good in a situation like ours. If I thought that the U.S. could competitively devalue our currency, run up a huge trade surplus in a global boom, and export our way to breakaway growth, please believe that I would be riding the Austerity Train hanging off the side of the economy car waving Scott Walker banners and whistling the Bill O'Reilly outtro theme. But we're not a small Scandinavian country, and it's not the 1990s, and every other major economy is either decelerating or exploding, and investors are paying us to hold their money. Tell me how austerity leads to growth again?

(Excerpt) Read more at theatlantic.com ...


TOPICS: Business/Economy; Extended News
KEYWORDS: sourcetitlenoturl
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1 posted on 06/22/2012 8:21:39 PM PDT by NoLibZone
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To: NoLibZone

Newsflash: States with structural economic problems are having to cut spending...developing...


2 posted on 06/22/2012 8:33:50 PM PDT by Cu Roi
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To: NoLibZone

It always feels good to spend other peoples money, no newsflash here.


3 posted on 06/22/2012 8:36:20 PM PDT by sickoflibs (Romney is a liberal. Just watch him closely try to screw us.)
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To: NoLibZone
"If I thought that the U.S. could competitively devalue our currency,..."

The author wants the larger pool of debt that comes with a high dollar (treasuries stuffed with foreign money). Go ahead. It'll be spent in no time, and the fall will be harder.


4 posted on 06/22/2012 8:37:05 PM PDT by familyop ("Wanna cigarette? You're never too young to start." --Deacon, "Waterworld")
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To: NoLibZone
Booming Iceland makes second early loan repayment to IMF
5 posted on 06/22/2012 8:43:13 PM PDT by DeaconBenjamin (A trillion here, a trillion there, soon you're NOT talking real money)
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To: Cu Roi

My state(North Dakota) has an $800 million surplus and we are doing fine

Our unemployment rate is 2.7%

Our state debt is only 6% GDP


6 posted on 06/22/2012 8:47:31 PM PDT by moonshot925
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To: NoLibZone

Most states are cutting spending because they are broke not because they want to to be fiscally sound.


7 posted on 06/22/2012 8:50:21 PM PDT by Mike Darancette (Ineptocracy; the Obama way.)
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To: NoLibZone

Which states have cut spending?


8 posted on 06/22/2012 8:54:50 PM PDT by NoLibZone (I trust Sarah Palin, Dick Cheney, Cain, Perry, Bachman : I trust their judgment on their 2012 pick.)
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To: NoLibZone

Yeah, like California and Illinois. Once again, the Atlantic is a source of infinite liberal navel gazing and circularly purposeless synapse firing and sentential blather, only to arrive at a convoluted conclusion that is so obviously wrong.


9 posted on 06/22/2012 9:16:27 PM PDT by Attention Surplus Disorder (A conservative, a liberal and a moderate walk into a bar. Bartender says "what'll it be, Mitt?")
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To: NoLibZone

According to the report:

Expenditure-cutting states are: Alabama, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Indiana, Kentucky,Maine, Michigan, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, Rhode Island, South Carolina, Vermont, and Washington.

Expenditure-expanding states are: Alaska, Arizona, Arkansas, Idaho, Illinois, Iowa, Kansas, Louisiana, Maryland, Massachusetts,Minnesota, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New York, North Carolina, North Dakota, Oklahoma,Oregon, South Dakota, Tennessee, Texas, Utah, Virginia, West Virginia, Wisconsin, and Wyoming.


10 posted on 06/22/2012 9:17:05 PM PDT by BigBobber
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To: NoLibZone

I managed to find it in footnote:
Expenditure-cutting states are: Alabama, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Indiana, Kentucky, Maine, Michigan, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, Rhode Island, South Carolina, Vermont, and Washington.

Expenditure-expanding states are: Alaska, Arizona, Arkansas, Idaho, Illinois, Iowa, Kansas, Louisiana, Maryland, Massachusetts, Minnesota, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New York, North Carolina, North Dakota, Oklahoma, Oregon, South Dakota, Tennessee, Texas, Utah, Virginia, West Virginia, Wisconsin, and Wyoming

See, it’s all the fault of those darned conservatives in Connecticut and California. Now if they only had been more like the liberals in Texas, Oklahoma, and Arizona...

(I know I cherry-picked, but this whole article illustrates what was meant by “There are three kinds of lies: Lies, Damned Lies, and Statistics.”}


11 posted on 06/22/2012 9:18:42 PM PDT by Gil4 (Sometimes it's not low self-esteem - it's just accurate self-assessment.)
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To: Gil4

But did they decide to cut spending or did their revenges decline?

Cause and effect is flipped.


12 posted on 06/22/2012 9:23:56 PM PDT by NoLibZone (I trust Sarah Palin, Dick Cheney, Cain, Perry, Bachman : I trust their judgment on their 2012 pick.)
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To: Mike Darancette
Most states are cutting spending because they are broke not because they want to to be fiscally sound.

Many of them have a balanced budget amendment.

13 posted on 06/22/2012 9:30:44 PM PDT by Moonman62 (The US has become a government with a country, rather than a country with a government.)
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To: NoLibZone

Dear Californians and Illinoians:

In my town, we ran into a deficit. For two years we turned out the street lights and recruited volunteers to maintain the city parks. We are now in the black. If you think WE are now going to BAIL YOU OUT, you are wrong.

You’re going to pay every last cent of your incredibly stupid pension debt BY YOURSELVES. If you need a loan, ASK THE UNIONS.


14 posted on 06/22/2012 9:32:55 PM PDT by cookcounty ("We're all born idiots, and we only get over that condition as we get less young." -J Goldberg)
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To: NoLibZone
I can almost guarentee that the states "forced" to cut back are still spending more than the previous years...

their cutbacks are simply not increasing spending like they planned....

15 posted on 06/22/2012 9:51:21 PM PDT by cherry
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To: cherry

Winner!

That any , let alone so many states “cut” spending without massive drum beating rallies doesn’t jell.


16 posted on 06/22/2012 10:08:28 PM PDT by NoLibZone (I trust Sarah Palin, Dick Cheney, Cain, Perry, Bachman : I trust their judgment on their 2012 pick.)
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To: NoLibZone

Of course, he’s asking the wrong question by ignoring the alternative. If we don’t cut spending, is there anyone on any planet who thinks we can sustain 1.5 trillion dollars a year in deficits, zero percent interest rates, and double digit money supply growth?

There are two painful alternatives—we can’t undo the debt and deficits already under the bridge—we can only pay them off or inflate them away.

Cutting spending is by far the less painful of the two.


17 posted on 06/22/2012 10:15:27 PM PDT by ModelBreaker
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To: NoLibZone

this is another which cave first the chicken or the egg.

the state cuts spending and state gdp dives.

or

the state gdp dives forcing the state to cut spending.

In Greece it is plain and obvious the gdp dived forcing the govt. to cut.

In most of the US states, this is also true.


18 posted on 06/22/2012 10:28:26 PM PDT by staytrue
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To: Gil4

Delaware’s budget went UP 2%. How is that expenditure-cutting?


19 posted on 06/23/2012 12:22:26 AM PDT by NTHockey (Rules of engagement #1: Take no prisoners)
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To: Mike Darancette
Most states are cutting spending because they are broke not because they want to to be fiscally sound.

I thought they just switched from spending to "charging"...

20 posted on 06/23/2012 3:18:44 AM PDT by trebb ("If a man will not work, he should not eat" From 2 Thes 3)
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