Most state capitols? Where? Whom? To my knowledge there is not one state in the West [Pacific and Rocky Mt states] that has not cut back on expenditures.
In addition to the possibility that your knowledge is simply wrong, or that the "cut backs" are really just decreases in the planned increase; "in the West" isn't the whole country, and you can increase these specific (probably temporarily) cutting back something else.
The states cut back where things are most flexible (probably to add the spending back later), but this type of spending is harder to cut back later (in fact for a time they are committed not to cut it back by accepting the money), it takes over control of the state budgets giving them less and less flexibility to adapt to future situations. If those states have a very strong economic recovery than they can probably find a way to deal with it. If they don't (either because the country goes in to a severe double dip, or just grows slower going forward, or because something specific about the state) than they are creating a lot of problems for themselves.
How much you want to bet that the unemployed people in those states would not agree?
Irrelevant. If accepting the funds threatens to bankrupt the state, who agrees or disagrees with the policy doesn't change that fact.
And this is bad why? Logic tells you that if people are paid more, then they have more money to spend.
Because it increases the federal and state deficits, and reduces the amount of work that can get done for the money. Government spending isn't a free lunch, if you waste it lavishly you have less to spend elsewhere, and/or your in more debt. Throwing extra money at the construction workers beyond what you need to spend to get them to do the job, means less construction at more cost. The "more cost" part means your draining more from the rest of the economy.
The intent of the stimulus was to stimulate the economy. If it did its job, then the states will take in more revenue in 2010 than in 2009.
It doing its job is a quite questionable idea. Also "take in more income" != "take in enough income to afford all this spending. |
