One Of The Biggest Forces "That's Been Holding Back The Economy Is Finally About To Disappear"

One Of The Biggest Forces That's Been Holding Back The Economy Is Finally About To Disappear

by Joe Weisenthal at Business Insider

http://www.businessinsider.com/state-austerity-coming-to-an-end-2013-5

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Anyway, the NYT reports today on a key phenomenon happening around the country.

Contrary to the predictions of all the people predicting a muni-collapse, states are increasingly flush with cash, reporting budget surpluses. That even includes California! Now there's a fight on what to do with the cash, rather than a fight on what to cut.

Calculated Risk, of course, has some great thoughts on the matter, but the big one is that the state and local drag is mostly over.

This chart from Calculated Risk shows how state and local spending has been a net drag on the economy every quarter since the recession.

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