Thursday, February 24, 2011

And he deliberately excluded dispersion

State vs Federal ,contractors, as well as military personell when Leonhardt produced this report.  I tried to get the number of contractors employed by DC, it was no where to be seen in the BLS data banks.

Nor does this graph, reposted by Kevin Drum, include dispersion, by which I mean fewer government paychecks in California and more in Washington DC.  A better measure is comparative housing.


Looking closely what to we see Kevin?  Your town, Los Angeles gave up 10% of its housing wealth to Washington DC.  Los Vegas is in the dumps.  In other words, because Kevin don't do due dilligence, you make bad policy taking money from LA and giving it to Washington DC, hence the 25% preimum we pay on DC Delusional policy. San Diego is a loser here, as is Portland.

So, ask Leonhardt the following:  If the better equilibrium is more industry in Washington DC,  then why to Federal deficits rise faster the closer we get to that equilibrium? 

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