Jeff Miller

The State and Local Government Crisis Looms Larger

The key points from the Don Boyd paper are the following:

1) Stimulus has not yet hit
2) The effect is quite significant, but temporary
3) More action might be required

In an environment with so much economic uncertainty, it is well to shorten our time horizons a bit.

There are some who think the stimulus was too little, and some who think it was unnecessary. If something seems to be helping in the near term, there is a large group assuring us that eventually it will be a disaster.

In practice, policy makers adjust to events.