Tuesday, February 28, 2012

Study: A powerful member of congress can have a negative effect on a state's economy

Researchers from Harvard Business School found that when a member of a state's congressional delegation becomes chair of a powerful committee, that state sees a tremendous influx of government cash through earmarks and government contracts, as one might expect. But rather than stimulating growth, the study found that the extra government spending actually causes businesses in that state to downsize.

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