New Jersey's Boom Is All About Government Stimulus
Explosive economic growth spurred by pandemic relief programs is helping the states dig out of deep financial troubles.
Government pandemic relief was just the emergency aid New Jersey needed.
Photographer: Justin Sullivan/Getty Images
Among the many ripples that came out of the 2008 financial crisis, one was the financial damage to older, slower-growing, heavily-indebted states like Illinois and New Jersey. Investments in infrastructure and public employees had to be put on hold as the governments spent years grappling with budget deficits and high levels of debt. Now, thanks to the surge in tax revenues being delivered by the current economic rebound, these states have an opportunity they haven't had in 15 years: the ability to invest rather than figuring out how to cut the budget.
It's a reminder of how federal dollars and a robust recovery can have a dramatic impact on what were previously perceived as structural problems.