We need some, it is a signal. Who hates volatility the most? Florida, the retirement state, then California by sheer size. Texas at the savings and loan, crisis; Texas now in oil surplus and more neutral to volatility. In these circumstances there is a cost in Federal deficit to keep the small states stable to volatility.
Clinton's revenge was taking the tax quants, leaving California bare, and we ate the volatility. So, what do the small states do without discretionary spending? They get volatility spikes, unfair. Hmmm...
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