This week, we take a look at the growth in state government direct spending per capita between 2001 and 2011 in real dollars (to eliminate the effects of population growth and inflationInflation is when the general price of goods and services increases across the economy, reducing the purchasing power of a currency and the value of certain assets. The same paycheck covers less goods, services, and bills. It is sometimes referred to as a “hidden tax,” as it leaves taxpayers less well-off due to higher costs and “bracket creep,” while increasing the government’s spending power. ). Louisiana leads the pack with a 63.6% increase in spending, followed by Wyoming (50.7%) and New Jersey (48.7%). On the other end of the spectrum, Alaska’s direct spending grew 8.9%, the lowest in the country. Close behind are West Virginia at 14.2% and South Carolina at 16.8%.
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