Science Journal of Economics Volume 2012 (2012), June 2012
ISSN:2276-6286

Author(s) 2012. This work is distributed under the Creative Commons Attribution 3.0 License.

Research Article

 

Long Run Economic Growth Suffers as Wisconsin Public Schools Suffer Budget Cuts

Author: Sahar Bahmani

Department of Economics University of Wisconsin at Parkside

Accepted 14 June 2012; Available Online 20 June 2012

doi: 10.7237/sje/283

Abstract:

Wisconsin public schools have suffered an $834 million budget cut in K-12 education spending over the next two years as well as a $300 million cut to Wisconsin's public universities, which has led to a dramatic decrease in funding for the professional development of teachers. This historically large decline in funding will ultimately have a negative impact on long run economic growth due to the decline in the productivity of these workers. The objective of this paper is to look into why and how the Wisconsin economy is surely to suffer due to the decrease in labor productivity because of the lack of resources for professional development activities and the retraining of workers. This will surely have negative damage on aggregate supply, causing major macroeconomic variables to be volatile and unstable during a period of time when achieving economic stability is the main goal. Some of the macroeconomic variables that will be affected because of labor productivity being negatively impacted in the state of Wisconsin due to the recent budget cuts are prices, GDP, employment rates, unemployment rates, consumer confidence and interest rates. We will look at each, individually, in this paper through a study that looks into the impact of these microeconomic and macroeconomic variables.

Keyword:Economic, Wisconsin, suffered, public Schools

 

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