According to Mark Zandi, economic advisor to Sen. John McCain, R-Ariz., and businesses around the world, each $1 of general state spending results in a $1.41 increase in economic activity. Using that multiplier, the $3.4 billion already cut from our state budget will lower our gross state product (GSP) by $4.8 billion through 2011. In 2008, there was one job for every $109,100 of GSP. Using a simple ratio, the loss in GSP equates to about 44,000 fewer jobs throughout Washington’s economy.Yes, even conservative-leaning economic advisors admit that government spending pwns government cuts.
This also gives me the chance to post one of my favorite rap battles: Hayek vs. Keynes showing off mad macroeconomic skillz.
