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How State and Local Governments Are Crucial to the Economy
Governing: In the debate in Washington over additional pandemic fiscal aid to state and local governments, the fact that they constitute a huge component of the economy seems to have been overlooked or forgotten. State and local governments' severe fiscal problems could cause the recession to drag on longer than otherwise while also hurting public services.
Many people — both federal officials and the public — don't seem to realize how crucial state and local governments are economically. Most of us likely think only about our own city or state, which may not seem that large. However, state and local governments, taken together, comprise one of the nation's largest industries, so they have a much greater economic impact than many understand.
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