According to WKU economists Steve Lile and Brian Goff, “the public sector accounts for a larger share of the KY economy than is the case of most neighboring states.”
In a paper on the new WKU Center for Applied Economics Web site, Lile and Goff offer the results of their research comparing the share of government activity that consumes states’ gross state product (GSP), which like the national GDP, is a leading indicator of states’ economic vitality.
Of the seven surrounding states, only Virginia and West Virginia — both of which house large federal government agencies — exceed Kentucky in the percent of their GSPs accounted for by government.
That’s one of the reasons why it’s so hard to believe the claims being made by Gov. Beshear and his get-along, go-along big spenders in the Kentucky General Assembly when they say that there’s no need for spending cuts immediately to deal with the ongoing Medicaid mess.
In one sense, they’re right. They should have been cutting the size of government a long time ago.