State and local budget cuts are threatining US economic recovery

Deep spending cuts by state and local governments pose a growing threat to an economy that is already grappling with high unemployment, depressed home prices and the surging cost of oil.

Lawmakers at state capitols and city halls are slashing jobs and programs, arguing that some pain now is better than a lot more later. But the cuts are coming at a price — weaker growth at the national level.

Tagged as: Economic recovery, government spending cuts, Inflation, Jobless, local government spending cuts, Oil prices, Recession, Unemployment, US economic recovery, US economy