Want the economy to recover? Don’t cut the public sector

We’ve never before seen an economic plunge like the one brought on by the coronavirus pandemic. The abrupt economic reversal will result in significant reductions in state tax revenue, which supports about half of the state’s budget. This has prompted a proposed cut to state worker salaries and the budget. However, these cuts would have a devastating effect on our already injured economy, as well as hobble government services that will be even more important in the coming year.

When an economic crisis paralyzes private business, only government is able to restore spending and spark a recovery. Government investment helped end the Great Depression in the 1930s.

Eighty years later, federal spending stopped the Great Recession by putting money into the pockets of individuals, businesses, and state governments to stimulate spending. That is also why Congress has taken unprecedented action to open the federal purse to address this crisis.