Saturday, September 18, 2010

California legislature demonstrates good governance

They have done nothing for the longest period ever.  This is good news when the multipliers are less than one, and they are much less than one in California.  As a result of doing nothing, the legislator has not yet driven the California economy into the dump.
What the Keynesians fail to tell us is that when multipliers are less than one, a reduction in government is a stimulus, yielding  greater productivity from  government and greater private sector growth.

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