Ygelsias says

Federal spending cuts shrink the federal budget deficit and constitute a negative shock to aggregate demand. States have to balance their budgets, so the alternative to a lower level of spending would be a higher level of taxes. In AD terms, it’s basically going to be a wash either way. Its the failure of congress to enact some kind of state/local bailout appropriation that’s forcing the anti-stimulative state level stuff.

I am actually looking into this right now. No firm conclusions as of yet, but 50 little Ricardos, that is no net effect of state spending cuts, looks to be winning out.

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