Monday, August 15, 2011

Sticky Wages are Shovel Ready

Housing advocates were stunned last week when a Mercury News report by John Woolfolk revealed the Santa Clara County Housing Authority's choice to spend $16 million in federal funds to give employees better retirement benefits -- instead of using it to provide homes for the poor, which is its mission. At a time when more people than ever need assistance with something as basic as housing, how could helping employees retire at age 50 be the highest priority? Mercury News

Keynesians engage in lots of payola when they get stimulations from the Great Exogenous. This is Romer's idea of stimulus, go straight to high paid public sector employees, then charge the middle class a year later

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