Wisconsin sees slow growth in consumer spending
MILWAUKEE (AP) — Wisconsin’s sluggish recovery from the Great Recession was reflected Thursday in new figures that show growth in consumer spending has lagged behind neighboring states and the nation as a whole…
Consumer spending also likely was affected by cuts in state spending and government jobs under Walker, along with a stagnant housing market, [Kundan Kishor, an economist at the University of Wisconsin-Milwaukee] said…
Lower government spending reduces demand for goods and services and can add to unemployment, said Steven Durlauf, a University of Wisconsin-Madison economist. He and Kishor said tax cuts that Walker pushed to put more money into residents’ pockets likely wouldn’t offset the impact of budget cuts.
“If I purchase something from you, I affect your income,” Kishor said. “But if I stop purchasing, you are going to lose your income, and then you are going to spend less. This is how the whole economy is dependent on each other.”
In other words, take money away from people and people have less money to spend, because math. People spending money is the economy. By knocking the legs out from under state workers, Walker put a stake through the heart of consumer demand and with it, the state economy.
Cutting salaries and benefits in a time of economic recovery is economic malpractice – Republicans were warned about this exact outcome – and the people of Wisconsin are paying the price. Here’s hoping Walker pays a price himself in November.
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