Why Governor Dayton should veto the spending and tax bills

Source: Flikr Creative Commons Session implodes at midnight over roads and public works That headline pretty much sums up the legislative session in general from an economics perspective. The Legislature made no progress on long-run issues such as infrastructure spending and pre-K education and probably worsened the medium-term budget outlook. I am especially disturbed by the tax and spending … [Read more...]

Don’t do it: Manufacturing budget problems in St. Paul

Source: Flikr Creative Commons Stop me if you've heard this one: a state has a budget surplus, so the legislature and the governor strike a deal to cut tax rates permanently and increase spending permanently.  Things don't turn out as well as the forecasts predict and the state finds itself with large budget deficits in a few short years. These are the outlines of the budget deal starting to … [Read more...]

Inflation! Debasement! April edition

Hyperinflation-era German currency Source: Flikr Creative Commons It’s time to check in on inflation!  and debasement! This is the certainty, expressed by Speaker of the House Paul Ryan, that no matter what the data tell us, accelerating inflation and a depreciating currency are just around the corner.  Here are the new readings for April 2016: Inflation: steady as she goes.  Prices overall … [Read more...]