Krugman now wants revenue sharing

The absence of state aid is a huge problem, because state and local governments, unlike the federal gov, are required to balance their budgets. But why? Important question 1/

Krugman twitter. 

He then goes on about value chain support, but puts it in different words. Whatever he said, he is late to the ball game. 

We had the revenue sharing meeting, and the idea was rejected this round and advocating it after the fact helps no one. Krugman needs to advocate revenue sharing for the next budget, we are not going backwards here.

Nor did any of the other progressive economists make the case. I could tell that Delong examined the issue and probably looked up the version of revenue sharing in the 70s, But he wrote no full article. Jared Bernstein looking for bold ideas missed this completely, but he misses most things. Nor did I hear from Larry Summers.

So, here we are, late to the ball game.  Why bother, I have my 600 bucks, so does everyone else and it is way to late to discover something this budget cycle.

The governors? Pitzer and Newsome missed the whole show they had no clue that I could observe. Both mostly in panic responding to their states peculiar shock, no one really listening to any common sense on the topic.

So I am glad we did get some tiny clues from our favorite economists. The build up of tiny clues helps us next time, but we are kicking can today,  without the revenue sharing.

My inner Markov was correct. I knew that revenue sharing would re enter the scene.  Now, Krugman has made it part of normative economics, and that means progressives can talks government as value chain, a Krugman Agglomeration. But if they discover value chain arithmetic, then they begin to use it everywhere, and Hicksonian jump shift is a goner. We be sandboxed, and it must be quite embarrassing for therm.

The progressives can use time travel, send one of their own back in time and discover a smarter economists than me.  But I think the time machine has designated the target, it will be a guy named Hayek.  This name will suddenly appear in our past and present and the inventor of sandbox. But do no believe it, that was a time traveler.