In the last budget, the New Hampshire state legislature cut state university funding by nearly half, as part of an effort to deal with a large budget gap opened up by unrealistic revenue forecasts issued by the previous legislature. Today, the NH Union-Leader reports an all-time best in fundraising success for the state university system: … Continue reading A Little Example of “Crowding-In”
Noel Johnson, Matt Mitchell, and Steve Yamarik have a new working paper answering that question in the affirmative. They look at state fiscal and regulatory policies and find that Democrats generally like to increase taxes and spending when in control of state houses and Republicans do the reverse. But when states have tough balanced-budget requirements … Continue reading Do Politicians Regulate When They Can’t Spend?
On the right there is growing resistance to the tax deal Republican leaders negotiated with President Obama. The deal trades another extension of the Bush tax cuts for something like $500 billion in new spending and a small cut to the payroll tax (it's devilishly hard to find any concrete details on the plan online … Continue reading A rotten tax deal?
Clearly, the recession caused state revenues to fall short of projections, opening up budget deficits. However, some states dealt with more serious fiscal problems than others. California's, New York's, and Illinois' woes have been in the news quite a bit lately. A new paper by Matt Mitchell at the Mercatus Center finds that states with … Continue reading What Caused the State Budget Gaps? UPDATED
Like the UK, Germany is planning to "set an example" by virtually eliminating their deficit by 2014. Couple these efforts with those of Ireland, Greece, Spain, and Portugal, and the U.S. is really starting to look out of step.
Just about everything Paul Krugman writes nowadays is in some way related to rationalizing the Obama deficits. Now, Krugman's a smarter man than I, but I think it's pretty clear that his partisanship drives his economic analysis these days, rather than the other way around. Yesterday Krugman turned a case against the euro into a … Continue reading Krugman’s Hackery on Deficit Hawkery