Must-Read: Peter Gosselin: Government Austerity Exacts Toll on U.S. Jobs, Wages and Growth

If federal, state and local governments were cutting taxes, increasing spending and expanding hiring as they did during all but one recovery since World War II, the economy would be growing 3 percent a year rather than slightly over 2 percent, the average of the past six years, according to a Bloomberg analysis of data.
Some 2.4 million more Americans would be employed, helping to push up lagging wages, the analysis estimates.

“We’re running the most contractionary fiscal policy in the postwar era and probably longer at a time when the case for an expansionary one could not be stronger,”