New Hampshire growth driven by government spending

I have a new piece on Atlantic.com entitled The Truth About New Hampshire: It’s the Government Spending, Stupid. The main point:

But here’s a surprise: The “Live Free or Die” State, having lost much of its manufacturing base, seems to be thriving mostly on a steady diet of government spending and public jobs. For one, government employment in New Hampshire is up 14% since 2000, compared to 6% for the country as a whole.

What’s more, real personal income growth in New Hampshire over the past decade has been driven almost entirely by government spending. Here’s how it breaks down: From 2000 to 2010, real personal income in the state rose by $4.6 billion, in 2005 dollars. Out of that, $3 billion, or 66%, came from the growth of government transfer payments such as Medicare, Medicaid, and Social Security. Another $1.4 trillion, or 31%, came from increased wages and benefits to government employees (numbers are rounded and in 2005 dollars).

In other words, 97% of real personal income growth in New Hampshire from 2000 to 2010 came from government transfer payments and government jobs.

Read the rest.

Comments

  1. Unless their govt workers got the mother of all bonuses, I think you mean $1.4 billion, not trillion. ;) Other comments on the original post debunk this silly analysis, so I don’t have to.

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