01 Apr The Economic Impact of Federal Spending on State Economic Performance: A Texas Perspective
Articles / / April 1, 2009
Federal spending comes with costs and should not be accepted as the “free lunch” it is frequently considered to be. As states consider whether to accept federal stimulus funds, this paper examines the cost of those federal funds and argues that an increase in the government expenditure wedge will reduce growth in the economy, resulting in a loss of jobs and other private sector activity.