The Roles Of Government During The Great Recession

159 Words1 Pages
In some cases the spheres of government may actually be quite disparate and not overlap at all. During the Great Recession national Keynesian policies of counter-cyclical spending kicked in to help stimulate the national economy. However, states either by law or constitution, must balance their budgets even in times of fiscal austerity. Similar in the effects of federal mandates, this may also lead to the erosion of state sovereignty through an overreliance on federal funding. Additionally, there are potentially desultory effects on the national government’s intended fiscal policy outcomes. One is that states absorb national resources for state-specific problems rather than the national issues for which the funds are intended, and for which