Jared Bernstein is performing his usual useful function here, providing us with his analysis so that we know what not to believe. Here it’s about how horrible it is that Federal workers live, often enough, paycheck to paycheck and therefore cannot survive a shutdown and the missing of one of those paychecks. Except they can borrow, can’t they? As Wilbur Ross has pointed out they can indeed borrow and there’s an ecosystem of people only too delighted to lend to them too.…See More
There is only one manner in which this editorial by The Observer could be correct – that the recession is over and the Good Times are back. Since this isn’t what the Observer believes we must therefore assume that the people who wrote it haven’t a clue what they’re talking about:
A decade after the crash, we still borrow too much and invest too little
Start with basic Keynes. There’s something called the paradox of thrift.…See More
Sure and isn’t it obvious that if the government is buying lots of something then it should get a pretty good price? Equally sure and isn’t it obvious that this isn’t quite how it does work out? For the annals of government procurement are packed jam full with stories of gross overpayments for items, gross inefficiency. So much so that there’s a phrase to describe such state buying – The Simple Shopper.
The real conflict here is between economies and diseconomies of scale.…See More