Thursday, October 09, 2008


Due to politics and balanced budget and other state constitution provisions, states tend to be very pro-cyclical in their spending. Times are good, they're flush, they spend. Times are bad, they're poor, they cut. Virginia is cutting.

Sensible people understand that in the US, the federal government therefore has an important role in transferring cash to the states in down times so as not to aggravate recessions. Extending unemployment benefits and adding more money for food stamps would be a nice start, then we can move onto SUPERTRAINS and whatnot.