A study released yesterday by the Texas Public Policy Foundation (TPPF) should bring pause to any state official that wishes to use federal stimulus dollars.
TPPF commissioned research firm Arduin, Laffer & Moore Econometrics to produce the the study, titled "The Economic Impact of Federal Spending on State Economic Performance – A Texas Perspective." The report shows that the state of Texas could lose anywhere from 131,400 to 171,900 jobs as a result of accepting federal stimulus dollars.
"These findings show clearly that growth in government crowds out growth in the private sector," said Talmadge Heflin, Director of the Foundations’s Center for Fiscal Policy and former chairman of the Texas House Appropriations Commitee.
Gov. Rick Perry, however, has done his part to mitigate the adverse effect of the stimulus bill by rejecting over $550 million of Texas’s share of the stimulus package. These funds would require the state to expand unemployment benefits, resulting in higher taxes on Lone Star State employers and elimination of jobs once the one-time injection of federal funds runs out.
The scope of this study goes beyond the borders of Texas and shows that the federal stimulus bill will result in a net reduction of $1.7 million jobs nationally.
As Grover Norquist, president of Americans for Tax Reform, recently said: "A Depression is a Recession that government tried to ‘fix.’ "