If there is going to be another fiscal stimulus, there will likely be a division between those who want tax rebates to households and those who want to help states pay for extra infrastructure spending. I have a compromise, based on the grand U.S. tradition of federalism: Let each state decide.So, first we'll have all the rent-seeking at the Federal level, which will encompass those trying to avoid being taxed for it and those who want the receipts as riders to the bill. Followed by a new round of rent-seeking at each of the 50 states as they doll out the goodies.
Congress could pass a fiscal stimulus of a certain amount per person but offer two ways to have it paid out. Each state governor could be allowed to determine whether to take the money as state aid or have it paid directly to his or her state's citizens. Those governors who think they have valuable infrastructure projects ready to go would take the money. Those who do not would let their citizens take the extra cash. When designing a fiscal stimulus, there is no compelling reason for one size fits all. Let each governor make a choice and answer to his or her state voters.
Friday, October 31, 2008
Why Fiscal Stimulus Stimulates the Wrong Things
If you want a perfect demonstration of how an understanding of public choice and rent-seeking can change what kind of policy recommendations you should make, then have a look at this post from Greg Mankiw:
Subscribe to:
Post Comments (Atom)
2 comments:
Hello !.
might , probably very interested to know how one can manage to receive high yields .
There is no initial capital needed You may commense to get income with as small sum of money as 20-100 dollars.
AimTrust is what you need
The company represents an offshore structure with advanced asset management technologies in production and delivery of pipes for oil and gas.
It is based in Panama with offices around the world.
Do you want to become an affluent person?
That`s your chance That`s what you desire!
I feel good, I began to take up income with the help of this company,
and I invite you to do the same. If it gets down to select a correct partner utilizes your funds in a right way - that`s the AimTrust!.
I take now up to 2G every day, and my first investment was 500 dollars only!
It`s easy to start , just click this link http://adoranovaz.bigheadhosting.net/erozugu.html
and go! Let`s take our chance together to get rid of nastiness of the life
Good day !.
might , probably curious to know how one can collect a huge starting capital .
There is no initial capital needed You may begin to receive yields with as small sum of money as 20-100 dollars.
AimTrust is what you need
AimTrust incorporates an offshore structure with advanced asset management technologies in production and delivery of pipes for oil and gas.
Its head office is in Panama with structures around the world.
Do you want to become an affluent person?
That`s your choice That`s what you really need!
I feel good, I began to get income with the help of this company,
and I invite you to do the same. If it gets down to choose a proper partner utilizes your savings in a right way - that`s AimTrust!.
I take now up to 2G every day, and what I started with was a funny sum of 500 bucks!
It`s easy to join , just click this link http://yjyzebelo.arcadepages.com/hihykyly.html
and go! Let`s take this option together to get rid of nastiness of the life
Post a Comment