Tuesday, February 15, 2011

Exogenous Government Spending

I stop when I see this in any economic analysis.  Government is exogenous to what?  Menzie tries this trick. The problem is that the Tea Party is anything but exogenous, they are experts at re-arranging the private economy  and the actions of government coherently. Keynes meant by exogenous is for elites to dictate before the next election.

Economists fail to deliver a Theory of Government.  I suggest the channel theory of government; government is a prduction system operating with limited bandwidth. Govenment ability to offer GDP growth depends upon its ability to deliver variable transactions across the domain without sparsity.  What we have is great variation in the cost of government over regions, such that Eric Cantor's district gets most of the stimulus, and by the time it reaches Menzies' state the benefits are quite negative.  We have stats to prove that, from the relative cost of government per state to the variations in office rents between California and Washington DC, to Boehner'sattempted swindle, and hosts of other indicators. Here in Fresno,CA our paper runs a headling: Obama adds $13 billion in spending, California has more budget cuts coming.

If the elites want exogeneity by dictatorship then I suggest they come up with an accurate model. How about exogeneity by secession, we Californians let the East Coast over the $15 trillion.

1 comment:

Anonymous said...

Here in Fresno,CA the cardstock runs any headling: President obama contributes $13 thousand throughout spending, Los angeles features a lot more finances cuts on its way.
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