Sunday, September 4, 2011

A federal bailout of California Public Unions

And in Illinois also. That is what the stimulus talk has been about ever since Romer started the issue. This is not about infrastructure.

California and Illinois, and much of New York are in deep trouble with pensions promises made by Progressive politicians over the years. Do I have to post the unemplyment rates for these states?

The small states will never approve unless the stimulus is spread by Senate misproportionality. That means the Jerry gets no bailout for his Dills act unless California is willing to pay it 25% premium, a very low multiplier indeed.

Hence, multipliers are less than one.

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