Get ready for the U.S. economy to get worse in 2012 as more states continue to have budget gaps, and if the federal government won't bail them out anymore, since austerity seems to be in fashion. (As we all know, government austerity measures everywhere at the same time leads to depression.)
This just goes to show we can't cut our way to economic growth and prosperity. It's not the problem that U.S. states aren't cutting back, or the government sector generally, which shrank in manpower by 280,000 in 2011. The problem is that there is not enough economic growth and resulting tax revenue.
By Lisa Lambert
January 9, 2012 | Reuters