It will surprise nobody to hear that some state budgets have structural deficits.
But solutions may be easier to find than our political discussion indicates. Economist have a striking degree of agreement on some issues that are being heatedly debated by politicians. 40 economists surveyed – including Democrats, Republicans and others- gave answers to public economic policy questions and the results of two questions are as follows:
92% agreement that the stimulus reduced the jobless rate
0% thought that cutting taxes from current levels would create jobs.
If our political system had more respect for facts, perhaps we’d already be a great deal closer to being out of this recession with countercyclical fiscal policy, along with paying attention to what types of stimulus has the greatest impact.
As is, maybe we can pay attention in time to make use of the fact that more stimulus could still help.