Thursday, December 22, 2011

A multiplier greater than one? Not

The population of the District of Columbia is growing faster than that of any state in the country, according to a new U.S. Census report that shows an acceleration of a trend in which largely skilled and educated workers have flocked to the city’s resilient local economy and its well-paying jobs connected to the federal government.WA Times

What is the logic here? The Keynesiasn would say that moving a lot of peole to DC to run the machinery better will make the whole economy better. But that is a two step process numbskulls, just the process Keynes deplored. People moving to DC because we have a shortage of bureaucrats? That is not a high multiplier.

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