Paul Krugman argues unsurprisingly in this morning’s NYT that more stimulus is needed. But he also reminds us that much of the pain will come at the state level, and will be concentrated at the low end of the totem pole:
Wait — there’s more bad news: the fiscal crisis of the states. Unlike the federal government, states are required to run balanced budgets. And faced with a sharp drop in revenue, most states are preparing savage budget cuts, many of them at the expense of the most vulnerable. Aside from directly creating a great deal of misery, these cuts will depress the economy even further.
I’ve been running around telling anyone who will listen (and several who would prefer not to) that falling and failing journalistic coverage of state budgets is a problem just because of the magnitudes in question. Add to this the statutory requirements to balance those budgets,and concentration of lost services among those who can least afford to lose them.