The Link Between Budget Cuts and Job Loss
In tough times, the worst thing the state can do is further shrink the economy. Yet that’s just what the Governor and Legislature seem intent on doing, according to a new report from the Institute for Wisconsin’s Future (IWF). The resulting job loss has thrown 18,000 Wisconsin residents out of work in the private sector alone.
There’s no question Wisconsin’s economy is stuck in neutral. New jobs figures show that Wisconsin has lost jobs for five straight months, and Wisconsin ranks last among the states in recent economic performance.
IWF’s report points to policy decisions by the Governor and Legislature as the reason for Wisconsin’s economic doldrums:
“When huge amounts of money are taken out of the economy, as Governor Walker’s policies are doing, it hurts almost everyone. Businesses have fewer customers; workers have fewer jobs; state and local governments have less tax revenue.”
The resulting job loss is a drag on Wisconsin’s economy.
Here’s how the Institute for Wisconsin’s Future breaks down the 18,000 jobs lost as a result of fiscal policies implemented by the Governor and Legislature:
- Cuts to state and local services resulted in 5,400 jobs lost in the private sector;
- Cuts directed at individuals resulted in 1,200 jobs lost;
- Changes to public employee compensation in this year’s budget repair bill resulted in 6,900 jobs lost; and
- Federal aid turned down by the Governor and Legislature resulted in 4,700 jobs lost.