Government spending boosts economy

The Great Recession of 2007–09 taught us a lot about how public spending decisions help or hinder economic recovery. The following lessons should guide lawmakers as they develop a budget for challenging times.

1. Economic recovery depends on state spending.

2. Government services help people and the economy.

3. Cutting public worker positions, pay hurts the economy.

4. State service contracts support jobs throughout Hawaiʻi.

5. Infrastructure spending supports the economy and builds Hawaiʻi’s future.