Sunday, October 20, 2013

No evidence yet that austerity is harmful to America

WSJ
The floodgates holding back a wave of U.S. economic data delayed by the partial government shutdown will begin to give way this week with the release of the September jobs report.
Employers probably added more workers last month than in August and the jobless rate held at the lowest level since 2008, indicating the economy was gaining momentum before the fiscal gridlock in Washington forced some federal agencies to close for 16 days. Other figures this week may show home sales cooled in September and consumer sentiment waned this month.

My claim was that austerity lead to expanding growth because California government is a horrid sinkhole and pestilence on America. Since the tax hike, California has shown six months of almost sanity, and growth rates would improve. They have been increasing upward since the tax change. I have not been proven wrong, yet.  My extended theory says the hysteria about our DC was overblown and we will be modestly surprised upward.

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