More “Chicken Little” on Obamacare?

November 10, 2014 Health Insurance

The latest challenge to the Affordable Care Act has the press and pundits in a dither. The Supreme Court preempted a full panel in the Court of Appeals (District of Columbia Circuit) already scheduled to hear an appeal in December and agreed to hear King v. Burwell. Both proponents and opponents are both amped up […]

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Should the Federal Reserve Lend to State and Local Governments?

June 23, 2012 Debt

Should state and local governments borrow from the Federal Reserve? Yes. Why? They’ll pay lower interest rates, thereby saving money without reducing services. The only losers will be the banks and other lenders, who are doing just fine, thank you. Should the Federal Reserve Lend to state and local governments? Yes. Why? See above. And […]

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The Patient is Recovering, but not Recovered

April 13, 2012 Economics

The Census data regarding state tax collections are now in for 2011. Here’s the report from Governing Magazine and here’s a summary quote: Total tax collections jumped in all 50 states last fiscal year, with oil-rich areas pocketing significant additional revenues. State financial data released today by the Census Bureau shows governments collected $763.7 billion […]

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Well, it’s Not Like Local Governments are all Flush. Krugman on the Economic Effects of Municipal Retrenchment

March 5, 2012 Budget

In Today’s New York Times, Paul Krugman writes States of Depression. In discussing the sluggish economic recovery, he says: But one significant factor in our continuing economic weakness is the fact that government in America is doing exactly what both theory and history say it shouldn’t: slashing spending in the face of a depressed economy. […]

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More on what happens to states if the Federal Government does not increase the debt ceiling

July 20, 2011 Debt

Here’s another analysis of what happens to states, this one with an interactive map and two scenarios if the Federal government can’t get its act together. We might get some state and local defaults after all.

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If the Federal Government decides not to pay its bills

July 19, 2011 Default

Mathew Yglesias does a nice summary of how the pain (and whatever) will roll downhill if the Federal Government decides not to pay its bills. Actually, Yglesias says “can’t pay its bills.” I think it’s a matter of Congressional choice. Note which states are most likely to suffer the most.

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