Increasing expenses and decreasing revenue are putting US states in a bind as currency users that must obtain the currency. The federal government acting as currency issuer is the only agent capable of addressing the issue. But the US government is paralyzed by political gridlock.
The Week
American state and city governments are bleeding out Ryan Cooper
All of which is a nice illustration of the fact that letting POLITICIANS decide the size of a stimulus package is daft. Either they do a Robert Mugabe and implement far too much stimulus, or they go the other way, and implement far too little.
ReplyDeleteIn contrast, decisions on the NATURE of stimulus (e.g. whether it takes the form of more public spending or tax cuts) is clearly a POLITICAL decision, as Positive Money has been arguing for years, and should be left in the hands of politicians.
"All of which is a nice illustration of the fact that letting POLITICIANS decide the size of a stimulus package is daft"
ReplyDeleteIt's one shit-stain politician, not politicians, Ralph, from the seriously have-not, hillbilly state of Kentucky that is holding back a robust stimulus package that will help feed families and also keep them in their homes. One shit-stain politician..
Hoovervilles Redux. Or better yet, "Trumpvilles"
https://www.history.com/topics/great-depression/hoovervilles