What a Drag | Jared Bernstein | On the Economy: "Here’s one reason we’re stuck in slow growth mode: the budget crunch among state and local governments.
The figure shows the yearly percentage point contribution to or subtraction from real GDP growth from the state and local sectors since the late 1980s. The trend bounces around but the recent cliff dive is evident. It’s also why we keep losing jobs in these sectors month after month. "
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