Economists take issue on stimulus plan

"There is no disagreement that we need action by our government, a recovery plan that will help to jumpstart the economy."
— PRESIDENT-ELECT BARACK OBAMA, JANUARY 9 , 2009

With all due respect Mr. President, that is not true.

Notwithstanding reports that all economists are now Keynesians and that we all support a big increase in the burden of government, we do not believe that more government spending is a way to improve economic performance. More government spending by Hoover and Roosevelt did not pull the United States economy out of the Great Depression in the 1930s. More government spending did not solve Japan's "lost decade" in the 1990s. As such, it is a triumph of hope over experience to believe that more government spending will help the U.S. today. To improve the economy, policy makers should focus on reforms that remove impediments to work, saving, investment and production. Lower tax rates and a reduction in the burden of government are the best ways of using fiscal policy to boost growth.

See this impressive list of signers
Source: Cato Institute

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Oregon: Three Years Behind California

As the ubiquitous 'they' say, Oregon is about three years behind California and so, keeping an eye on California seems to make sense. Let them make their mistakes and then do what's needed to prevent the same thing from happening here. Right?

Victor Davis Hanson, 55-year resident of California, warns, "There is no longer the nucleus for any organized tax-payer revolt as in the 1970s; so when the mob-like chorus chants ‘Soak the rich!’ and the “they should pay” rhetoric heats up, the targeted now flee rather than fight." Those 'targeted' are the highly educated, high-income earners who contribute to the state in more ways than the taxes they pay and they are being replaced by undereducated, low-income earners. Hanson says that those who are taking flight are going to other western states, including Oregon. But, if Oregon is three years behind California, shouldn't we expect that those who fled California might set the trend for the big earners to flee Oregon as well if we're not careful? Reminder: California is well beyond broke, Oregon... not so much... at the moment. Read More......