Wednesday, May 11, 2011

I should run a regression study on crowding out

Oil:
My eyeball tells me that when Congress goes on a spending spree, oil prices rise and the economy stutters.

Pensions:
In Fresno the housing crisis is mainly driven by the huge pension costs that have been incurred. California still has no budget and no solution.

Illinois has to pay companies to come to the state, because their business taxes are too high.

Government is doing nothing but crowd, crowd others through the oil channel, crowd itself due to corruption and payola.

Here is an example:
A 2007 arbitration ruling letting San Jose, California, firefighters retire as early as age 48 with 90 percent of their pay may result in the firing of 370 municipal workers as the 10th-largest U.S. city tries to close a budget deficit fueled by higher pension costs...  
San Jose firefighters, who can be hired as young as 18, can retire at any age with 30 years’ service and receive 90 percent of their highest annual salary. Such a firefighter retiring today would get a base pension of about $95,000, with 3 percent annual increases, Gurza said. 
.Bloomberg

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